Please answer ALL questions. If you are not willing to answer ALL, please dont d
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Please answer ALL questions. If you are not willing to answer ALL, please dont do any. Help me learn.
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Markus Company’s common stock sold for $5.50 per share at the end of this year. The company paid a common stock dividend of $0.77 per share this year. It also provided the following data excerpts from this year’s financial statements:
What is the dividend payout ratio and the dividend yield ratio? (Round your intermediate and final answers to two decimal places (i.e., 0.1234 should be entered as 12%).)
What is the accounts receivable turnover and the average collection period? (Use 365 days in a year. Round your intermediate and final answers to 2 decimal places.)
What is the inventory turnover and the average sale period? (Use 365 days in a year. Round your intermediate and final answers to 2 decimal places.)
Markus Company’s common stock sold for $5.50 per share at the end of this year. The company paid a common stock dividend of $0.77 per share this year. It also provided the following data excerpts from this year’s financial statements:
Explanation / Answer
1.Earning Per Share = Net Income / Outstanding shares = 102600 / 171000 = 0.60
2.Price Earning Ratio = Market Price / EPS = 5.50 / 0.60 = 9.167
3.Dividend Payout Ratio = Dividend per share / EPS = 0.77/0.60 = 1.28
Dividend yield ratio = Dividend per share / Market price = 0.77 / 5.50 = 0.14
4.Return on Total Assets = Net Income / Avg. Total Assets = 102600(0.70) / ( 857000 + 938800)/2 = 7.99%
5.Return on Equity = Net Income / Avg. Equity = 102600 / (625000+730000)/2 = 15.14%
6.Book Value per share = Stockholders Equity / outstanding shares = 625000 / 171000 = 3.65
7.Working Capital = Current Assets - Current Liabilities = 233500 - 91500 = 142000
Current Ratio = Current Ratio / Current Liabilities = 233500 / 91500 = 2.55
8.Acid Test Ratio = Quick assets / Current Liabilities = 154500 / 91500 = 1.69
9.Accounts Receivble Turnover = Sales / Avg.Receivables = 1195000 / ( 100000 + 71200 ) /2 = 13.96
Avg. Collection period = 365 / Receivables Turnover = 365 / 13.96 = 26.14 days
10.Inventory Turnover Ratio = Cost of goods sold / Avg. Inventory = 693100 / ( 79000 + 100000 ) / 2 = 7.74
Average sale period = 365 / 7.74 = 47.15 days
11.Operating Cycle = Avg. Collection period + Average sale period = 26.14 + 47.15 = 73.30 Days
12.Total Asset Turnover = Sales / Average total Assets = 1195000 / ( 857000 + 938800)/2 = 0.133
13.Times Interest Earned = EBIT / Interest expense = (501900 - 338250) / 16500 = 9.92
14.Debt to Equity Ratio = Total Liabilities / Total Equity = 232000 / 625000 = 0.3712
15.Equity Multiplier = Total Assets / Stockholders Equity = 857000 / 625000 = 1.3712
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