Required information [The following information applies to the questions displayed below.] Markus Company's common stock sold for $2.25 per share at the end of this year. The company paid a common stock dividend of $0.45 per share this year. It also provided the following data excerpts from this year's financial statements: Cash Accounts receivable Inventory Current assets Total assets Current liabilities Total liabilities Common stock, $1 par value Total stockholders' equity Total liabilities and stockholders' equity Sales (all on account) Cost of goods sold Gross margin Net operating income. Interest expense Net income Return on equity This Year $ 550,000 $ 319,000 $ 231,000 $ 93,500 % $ 5,500 $ 61,600 Ending Balance $ 29,000 $ 50,000 $ 48,100 $ 127,100 $375,000 $ 51,000 $ 100,000 $ 108,000 $ 275,000 $ 375,000 5. What is the return on equity? (Round your answer to the nearest whole percentage place. i.e., 0.1234 should be considered as 12%.) Beginning Balance $ 44,800 $ 43,800 $ 50,000 $ 138,600 $360,000 $ 36,000 $ 90,000 $ 108,000 $ 270,000 $360,000
Required information [The following information applies to the questions displayed below.] Markus Company's common stock sold for $2.25 per share at the end of this year. The company paid a common stock dividend of $0.45 per share this year. It also provided the following data excerpts from this year's financial statements: Cash Accounts receivable Inventory Current assets Total assets Current liabilities Total liabilities Common stock, $1 par value Total stockholders' equity Total liabilities and stockholders' equity Sales (all on account) Cost of goods sold Gross margin Net operating income. Interest expense Net income Return on equity This Year $ 550,000 $ 319,000 $ 231,000 $ 93,500 % $ 5,500 $ 61,600 Ending Balance $ 29,000 $ 50,000 $ 48,100 $ 127,100 $375,000 $ 51,000 $ 100,000 $ 108,000 $ 275,000 $ 375,000 5. What is the return on equity? (Round your answer to the nearest whole percentage place. i.e., 0.1234 should be considered as 12%.) Beginning Balance $ 44,800 $ 43,800 $ 50,000 $ 138,600 $360,000 $ 36,000 $ 90,000 $ 108,000 $ 270,000 $360,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required information
[The following information applies to the questions displayed below.]
Markus Company's common stock sold for $2.25 per share at the end of this year. The company paid a common stock
dividend of $0.45 per share this year. It also provided the following data excerpts from this year's financial statements:
Cash
Accounts receivable
Inventory
Current assets
Total assets
Current liabilities
Total liabilities
Common stock, $1 par value
Total stockholders' equity
Total liabilities and stockholders' equity
Sales (all on account)
Cost of goods sold
Gross margin
Net operating income
Interest expense
Net income
Return on equity
This Year
$ 550,000
$ 319,000
$ 231,000
$ 93,500
$ 5,500
$ 61,600
%
Ending Balance
$ 29,000
$ 50,000
$ 48,100
$ 127,100
$ 375,000
$ 51,000
$ 100,000
$ 108,000
$ 275,000
$ 375,000
5. What is the return on equity? (Round your answer to the nearest whole percentage place. i.e., 0.1234 should be considered as
12%.)
Beginning
Balance
$ 44,800
$ 43,800
$ 50,000
$ 138,600
$360,000
$ 36,000
$ 90,000
$ 108,000
$ 270,000
$360,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd3824b55-af29-4e78-943b-f923818c94e5%2Fb7ba4a2e-a4fc-454d-b0c2-b53014adc991%2Fgtjuwmc_processed.png&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 $2.25 per share at the end of this year. The company paid a common stock
dividend of $0.45 per share this year. It also provided the following data excerpts from this year's financial statements:
Cash
Accounts receivable
Inventory
Current assets
Total assets
Current liabilities
Total liabilities
Common stock, $1 par value
Total stockholders' equity
Total liabilities and stockholders' equity
Sales (all on account)
Cost of goods sold
Gross margin
Net operating income
Interest expense
Net income
Return on equity
This Year
$ 550,000
$ 319,000
$ 231,000
$ 93,500
$ 5,500
$ 61,600
%
Ending Balance
$ 29,000
$ 50,000
$ 48,100
$ 127,100
$ 375,000
$ 51,000
$ 100,000
$ 108,000
$ 275,000
$ 375,000
5. What is the return on equity? (Round your answer to the nearest whole percentage place. i.e., 0.1234 should be considered as
12%.)
Beginning
Balance
$ 44,800
$ 43,800
$ 50,000
$ 138,600
$360,000
$ 36,000
$ 90,000
$ 108,000
$ 270,000
$360,000
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