Markus Companys common stock sold for $3.25 per share at the end of this year. The company
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Markus Company’s common stock sold for $3.25 per share at the end of this year. The company paid a common stock dividend of $0.65 per share this year. It also provided the following data excerpts from this year’s financial statements:
Ending Balance | Beginning Balance | |||
Cash | $ | 39,000 | $ | 35,200 |
Accounts receivable | $ | 72,000 | $ | 56,200 |
Inventory | $ | 61,900 | $ | 72,000 |
Current assets | $ | 172,900 | $ | 163,400 |
Total assets | $ | 531,000 | $ | 550,400 |
Current liabilities | $ | 69,000 | $ | 60,000 |
Total liabilities | $ | 156,000 | $ | 140,400 |
Common stock, $1 par value | $ | 132,000 | $ | 132,000 |
Total stockholders’ equity | $ | 375,000 | $ | 410,000 |
Total liabilities and stockholders’ equity | $ | 531,000 | $ | 550,400 |
This Year | ||
Sales (all on account) | $ | 850,000 |
Cost of goods sold | $ | 493,000 |
Gross margin | $ | 357,000 |
Net operating income | $ | 173,375 |
Interest expense | $ | 9,500 |
Net income | $ | 114,712 |
rev: 05_25_2017_QC_CS-89969
8. What is the acid-test ratio at the end of this year?
Related Book For
Introduction to Managerial Accounting
ISBN: 978-0078025792
7th edition
Authors: Peter Brewer, Ray Garrison, Eric Noreen
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