[The following information applies to the questions displayed below.] Markus Company’s common stock sold for $5.25 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: EndingBalanceBeginningBalanceCash$49,000$44,200Accounts receivable$92,000$68,700Inventory$76,300$92,000Current assets$217,300$204,900Total assets$801,000$875,400Current liabilities$85,500$90,000Total liabilities$206,000$185,400Common stock, $1 par value$165,000$165,000Total stockholders’ equity$595,000$690,000Total liabilities and stockholders’ equity$801,000$875,400 This YearSales (all on account)$1,095,000Cost of goods sold$635,100Gross margin$459,900Net operating income$313,875Interest expense$15,500Net income$208,862 10. 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.)

Inventory Turnover Cost of Good sold / Average Inventory 635100/84150 7.55 Average Inventory (Beginning Inventory + Closing Inventory)/2 (92000+76300)/2 $84,150 Average sales period 365 days /Inventory turnover 365/7.55 48.34 days

Answered: Markus Company’s common stock sold for…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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[The following information applies to the questions displayed below.]

Markus Company’s common stock sold for $5.25 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:

	Ending Balance	Beginning Balance
Cash	$	49,000	$	44,200
Accounts receivable	$	92,000	$	68,700
Inventory	$	76,300	$	92,000
Current assets	$	217,300	$	204,900
Total assets	$	801,000	$	875,400
Current liabilities	$	85,500	$	90,000
Total liabilities	$	206,000	$	185,400
Common stock, $1 par value	$	165,000	$	165,000
Total stockholders’ equity	$	595,000	$	690,000
Total liabilities and stockholders’ equity	$	801,000	$	875,400

	This Year
Sales (all on account)	$	1,095,000
Cost of goods sold	$	635,100
Gross margin	$	459,900
Net operating income	$	313,875
Interest expense	$	15,500
Net income	$	208,862

10. 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.)

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