Markus Company's common stock sold for $5.75 per share at the end of this year. dividend of $0.69 per share this year. It also provided the following data excerpts fr
Markus Company's common stock sold for $5.75 per share at the end of this year. dividend of $0.69 per share this year. It also provided the following data excerpts fr
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Markus Company's common stock sold for $5.75 per share at the end of this year. The company paid a common stock
dividend of $0.69 per share this year. It also provided the following data excerpts from this year's financial statements:
Cash
Accounts receivable
Inventory
Current assets
$
51,000 $ 46,000
$ 98,000 $ 70,000
$ 77,800 $ 98,000
$226,800 $ 214,000
$868,000 $956,200
$90,000 $ 96,000
$ 218,000 $196,200
$ 172,000 $172,000
$760,000
Common stock, $1 par value
Total stockholders' equity
$ 650,000
Total liabilities and stockholders' equity $868,000
$956,200
Total assets
Current liabilities
Total liabilities
Sales (all on account)
Cost of goods sold
Gross margin
Net operating income
Interest expense
Net income
Ending
Balance
This Year
$1,160,000
$ 672,800
$ 487,200
$352,750
$ 17,000
$ 235,025
Beginning
Balance](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0ce123d7-ec28-4713-8995-d1c19687ec94%2F6124e2aa-b415-4eb8-ba9b-86872caccc97%2F0in6wni_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Markus Company's common stock sold for $5.75 per share at the end of this year. The company paid a common stock
dividend of $0.69 per share this year. It also provided the following data excerpts from this year's financial statements:
Cash
Accounts receivable
Inventory
Current assets
$
51,000 $ 46,000
$ 98,000 $ 70,000
$ 77,800 $ 98,000
$226,800 $ 214,000
$868,000 $956,200
$90,000 $ 96,000
$ 218,000 $196,200
$ 172,000 $172,000
$760,000
Common stock, $1 par value
Total stockholders' equity
$ 650,000
Total liabilities and stockholders' equity $868,000
$956,200
Total assets
Current liabilities
Total liabilities
Sales (all on account)
Cost of goods sold
Gross margin
Net operating income
Interest expense
Net income
Ending
Balance
This Year
$1,160,000
$ 672,800
$ 487,200
$352,750
$ 17,000
$ 235,025
Beginning
Balance
Transcribed Image Text:5. What is the return on equity? (Round your answer to the nearest whole percentage place (i.e., 0.1234 should be entered as 12).)
Return on equity
%
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