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?
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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 |
| $ | 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 |
$ | 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
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