Question

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:

	Ending Balance		Beginning Balance
Cash	$	51,000	$	46,000
Accounts receivable	$	98,000	$	70,000
Inventory	$	77,800	$	98,000
Current assets	$	226,800	$	214,000
Total assets	$	868,000	$	956,200
Current liabilities	$	90,000	$	96,000
Total liabilities	$	218,000	$	196,200
Common stock, $1 par value	$	172,000	$	172,000
Total stockholders’ equity	$	650,000	$	760,000
Total liabilities and stockholders’ equity	$	868,000	$	956,200

     

	This Year
Sales (all on account)	$	1,160,000
Cost of goods sold	$	672,800
Gross margin	$	487,200
Net operating income	$	352,750
Interest expense	$	17,000
Net income	$	235,025

rev: 05_25_2017_QC_CS-89969

Required:

What is the earnings per share? (Round your answer to 2 decimal places.)

Earnings per share

$1.37

What is the dividend payout ratio and the dividend yield ratio? (Do not round intermediate calculations. Round your answer to the nearest whole percentage place. i.e., 0.1234 should be considered as 12%.)

Dividend payout ratio		%
Dividend yield ratio		%

What is the return on equity? (Round your answer to the nearest whole percentage place. i.e., 0.1234 should be considered as 12%.)

Return on equity

%

What is the amount of working capital and the current ratio at the end of this year? (Round "Current ratio" to 2 decimal places.)   

Working capital
Current ratio

Answer 1