Question

Markus Company’s common stock sold for $4.50 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:
Accounts Ending Balance Beginning Balance
Cash $35,000 $30,000
Accounts Receivable $60,000 $50,000
Inventory $55,000 $60,000
Current Assets $150,000 $140,000
Total Assets $450,000 $460,000
Current Liabilities $60,000 $40,000
Total Liabilities $130,000 $120,000
Common Stock $1 Par Value $120,000 $120,000
Total Stockholders’ Equity $320,000 $340,000
Total Liabilities and
Stockholders’ Equity $450,000 $460,000


Accounts This Year
Sales (All on Account) $700,000
Cost of Goods Sold $400,000
Gross Margin $300,000
Net Operating Income $140,000
Interest Expense $8,000
Net Income $92,400

1 what is the earnings per share?
2 what is the price-earnings ratio?
3 what is the dividend payout ratio?
4.what is the dividend yield ratio?
5.what is the return on total assets (assuming a 30% tax rate)?
6.what is the return on common stockholders' equity?
7.what is the book value per share at the end of this year?
8.what is the amount of working capital and the current ratio at the end of this year?
9.what is the acid-test ratio at the end of this year?
10.what is the accounts receivable turnover?
11.what is the average sale period?
12.what is the inventory turnover?
13.what is the average sale period?
14.what is the time interest earned ratio?
15.what is the debt -to-equity ratio at the end of this year?

Answer 1

1)Earnings per share=$0.77 per share

2)Price- earning ratio = 3.57 times

3)Dividend payout ratio = 71.43%

4)Dividend yeild ratio = 20%

Explanation:

1)

The earnings per share is calculated as,

Earnings per share = net income / number of shares outstanding

=$92.400 / 120,000

EPS=$0.77 per share

2)

Th price- earning ratio is calculated as

price per earning ratio = market price per share / earning per share

=$2.75 / $0.77

Price earning ratio =3.57 times

3)

The divided payout ratio is calculated as

Divided payout ratio = Divided per share / Earning per share

=$0.55/$0.77

Divided payout ratio=71.43%

4)The Dividend yield ratio is calculated as

Dividend yield ratio = Dividend per share / Price per share

=$0.55/$2.75

Dividend yield ratio =20%