Question

I need answers 1-15

Markus Company's common stock sold for $2.75 per share at the end of this year. The company paid a common stock dividend of $0.55 per share this year. It also provided the following data excerpts from this year's financial statements: Ending Beginning Balance 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 Sales (all on account) Cost of goods sold Gross margin Net operating income Interest expense Net income This Year $ 700,000 $ 400,000 $ 300,000 $ 140,000 $ 8,000 $ 92,400 Required: 1. What is the earnings per share? (Round your answer to 2 decimal plates.) Earnings per share $ 0.77

Answer 1

Answer of Part 1:

Earnings Per Share = Net Income / No. of Common Stock
Earnings per share = $92,400 / 120,000
Earnings per share = $0.77

Answer of Part 2:

Price Earnings Ratio = Price per share / Earnings per share
Price Earnings Ratio = $2.75 / $0.77
Price Earnings Ratio = $3.57

Answer of Part 3:

Dividend Payout Ratio = Dividend per share / Earnings per share
Dividend Payout Ratio = $0.55 / $0.77
Dividend Payout Ratio = 71%

Dividend Yield Ratio = Dividend Per share / Price Per Share *100
Dividend Yield Ratio = $0.55 / $2.75 *100
Dividend Yield Ratio = 20%

Answer of Part 4:

Average Total Assets = (Beginning Total Assets + Ending Total Assets)/2
Average Total Assets = ($460,000 + $450,000)/2
Average Total Assets = $455,000

Return on Total Assets = Net Operating Income / Average Total Assets *100
Return on Total Assets = $140,000 / $455,000 *100
Return on Total Assets = 30.8%

Answer of Part 5:

Average Stockholders Equity = (Beginning Stockholders Equity + Ending Stockholders Equity)/2
Average Stockholders Equity = ($340,000 + $320,000)/2
Average Stockholders Equity = $330,000

Return on Equity = Net Income / Average Stockholders Equity *100
Return on Equity = $92,400 / $330,000 *100
Return on Equity = 28%