FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Markus Company’s common stock sold for $5.25 per share at the end of this year. The company paid a common stock dividend of $0.63 per share this year. It also provided the following data excerpts from this year’s financial statements:     

 

  Ending
Balance
Beginning
Balance
Cash $ 49,000 $ 44,200
Accounts receivable $ 92,000 $ 68,700
Inventory $ 76,300 $ 92,000
Current assets $ 217,300 $ 204,900
Total assets $ 801,000 $ 875,400
Current liabilities $ 85,500 $ 90,000
Total liabilities $ 206,000 $ 185,400
Common stock, $1 par value $ 165,000 $ 165,000
Total stockholders’ equity $ 595,000 $ 690,000
Total liabilities and stockholders’ equity $ 801,000 $ 875,400
 

     

  This Year
Sales (all on account) $ 1,095,000
Cost of goods sold $ 635,100
Gross margin $ 459,900
Net operating income $ 313,875
Interest expense $ 15,500
Net income $ 208,862
 

 

7. What is the amount of working capital and the current ratio at the end of this year?

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