55 15 The Foundational 15 (Algo) [LO14-2, LO14-3, LO14-4, LO14-5, LO14-6] [The following information applies to the questions displayed below.] 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: 4:33 Cash Accounts receivable Inventory Current assets Total assets Current liabilities Total liabilities Common stock, $1 par value Total stockholders' equity Ending Balance $ 40,000 $ 84,000 Beginning Balance $ 40,200 $ 63,700 $ 70,600 $ 194,600 $ 699,000 $ 78,000 $ 84,000 $ 187,900 $ 755,600 $ 76,500 $ 165,600 $ 184,000 $ 152,000 $ 152,000 $ 515,000 $ 590,000 Total liabilities and stockholders' equity $ 699,000 $ 755,600 This Year Sales (all on account) $ 980,000 Cost of goods sold Gross margin $ 568,400 $ 411,600 Net operating income $ 263,250 Interest expense Net income $ 13,500 $ 174,825 Foundational 14-7 (Algo) 7. What is the amount of working capital and the current ratio at the end of this year? (Round "Current ratio" to 2 decimal places.) Answer is complete but not entirely correct. Working capital $ 114,000 x Current ratio 2.48
55 15 The Foundational 15 (Algo) [LO14-2, LO14-3, LO14-4, LO14-5, LO14-6] [The following information applies to the questions displayed below.] 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: 4:33 Cash Accounts receivable Inventory Current assets Total assets Current liabilities Total liabilities Common stock, $1 par value Total stockholders' equity Ending Balance $ 40,000 $ 84,000 Beginning Balance $ 40,200 $ 63,700 $ 70,600 $ 194,600 $ 699,000 $ 78,000 $ 84,000 $ 187,900 $ 755,600 $ 76,500 $ 165,600 $ 184,000 $ 152,000 $ 152,000 $ 515,000 $ 590,000 Total liabilities and stockholders' equity $ 699,000 $ 755,600 This Year Sales (all on account) $ 980,000 Cost of goods sold Gross margin $ 568,400 $ 411,600 Net operating income $ 263,250 Interest expense Net income $ 13,500 $ 174,825 Foundational 14-7 (Algo) 7. What is the amount of working capital and the current ratio at the end of this year? (Round "Current ratio" to 2 decimal places.) Answer is complete but not entirely correct. Working capital $ 114,000 x Current ratio 2.48
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter8: Liabilities And Stockholders' Equity
Section: Chapter Questions
Problem 8.23E
Related questions
Question
![55
15
The Foundational 15 (Algo) [LO14-2, LO14-3, LO14-4, LO14-5, LO14-6]
[The following information applies to the questions displayed below.]
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:
4:33
Cash
Accounts receivable
Inventory
Current assets
Total assets
Current liabilities
Total liabilities
Common stock, $1 par value
Total stockholders' equity
Ending Balance
$ 40,000
$ 84,000
Beginning Balance
$ 40,200
$ 63,700
$ 70,600
$ 194,600
$ 699,000
$ 78,000
$ 84,000
$ 187,900
$ 755,600
$ 76,500
$ 165,600
$ 184,000
$ 152,000
$ 152,000
$ 515,000
$ 590,000
Total liabilities and stockholders' equity
$ 699,000
$ 755,600
This Year
Sales (all on account)
$ 980,000
Cost of goods sold
Gross margin
$ 568,400
$ 411,600
Net operating income
$ 263,250
Interest expense
Net income
$ 13,500
$ 174,825
Foundational 14-7 (Algo)
7. What is the amount of working capital and the current ratio at the end of this year? (Round "Current ratio" to 2 decimal places.)
Answer is complete but not entirely correct.
Working capital
$ 114,000 x
Current ratio
2.48](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F31713cb1-4623-482d-b36a-4cdfd63e0933%2F6f9cfe8b-74f1-4b43-b30a-ed36861685eb%2Fmm3sdt_processed.jpeg&w=3840&q=75)
Transcribed Image Text:55
15
The Foundational 15 (Algo) [LO14-2, LO14-3, LO14-4, LO14-5, LO14-6]
[The following information applies to the questions displayed below.]
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:
4:33
Cash
Accounts receivable
Inventory
Current assets
Total assets
Current liabilities
Total liabilities
Common stock, $1 par value
Total stockholders' equity
Ending Balance
$ 40,000
$ 84,000
Beginning Balance
$ 40,200
$ 63,700
$ 70,600
$ 194,600
$ 699,000
$ 78,000
$ 84,000
$ 187,900
$ 755,600
$ 76,500
$ 165,600
$ 184,000
$ 152,000
$ 152,000
$ 515,000
$ 590,000
Total liabilities and stockholders' equity
$ 699,000
$ 755,600
This Year
Sales (all on account)
$ 980,000
Cost of goods sold
Gross margin
$ 568,400
$ 411,600
Net operating income
$ 263,250
Interest expense
Net income
$ 13,500
$ 174,825
Foundational 14-7 (Algo)
7. What is the amount of working capital and the current ratio at the end of this year? (Round "Current ratio" to 2 decimal places.)
Answer is complete but not entirely correct.
Working capital
$ 114,000 x
Current ratio
2.48
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