Markus Company’s common stock sold for $1.75 per share at the end of this year. The company paid a common stock dividend of $0.42 per share this year. It also provided the following data excerpts from this year’s financial statements: Ending BalanceBeginning BalanceCash$ 27,000$ 43,800Accounts receivable$ 48,000$ 41,300Inventory$ 45,100$ 48,000Current assets$ 120,100$ 133,100Total assets$ 312,000$ 263,800Current liabilities$ 49,500$ 34,500Total liabilities$ 82,000$ 73,800Common stock, $1 par value$ 105,000$ 105,000Total stockholders’ equity$ 230,000$ 190,000Total liabilities and stockholders’ equity$ 312,000$ 263,800 This YearSales (all on account)$ 580,000Cost of goods sold$ 336,400Gross margin$ 243,600Net operating income$ 49,500Interest expense$ 3,000Net income$ 32,550 1. What is the earnings per share?

The objective of the question is to calculate the Earnings Per Share (EPS) for Markus Company. EPS…

Answered: Markus Company’s common stock sold for…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 4PB

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Markus Company’s common stock sold for $1.75 per share at the end of this year. The company paid a common stock dividend of $0.42 per share this year. It also provided the following data excerpts from this year’s financial statements:

	Ending Balance	Beginning Balance
Cash	$ 27,000	$ 43,800
Accounts receivable	$ 48,000	$ 41,300
Inventory	$ 45,100	$ 48,000
Current assets	$ 120,100	$ 133,100
Total assets	$ 312,000	$ 263,800
Current liabilities	$ 49,500	$ 34,500
Total liabilities	$ 82,000	$ 73,800
Common stock, $1 par value	$ 105,000	$ 105,000
Total stockholders’ equity	$ 230,000	$ 190,000
Total liabilities and stockholders’ equity	$ 312,000	$ 263,800