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Markus Company's common stock sold for $5.25 per share at the end of this year. The company paid preferred stock dividends totaling $4,400 and a common stock dividend of $1.24 per share this year. It also provided the following data excerpts from this year's financial statements Cash Accounts receivable Inventory Current assets Total assets Current liabilities Total liabilities Preferred stock Common stock, $1 par value Total stockholders' equity Total liabilities and stockholders' equity Sales (all on account) Cost of goods sold Gross margin Net operating income Interest expense Net income This Year $1,095,000 $ 635,100 $ 459,900 $ 313,875 Acid-test ratio $ 5 15,500 186,800 Ending Balance Beginning Balance 49,000 92,000 $ $ 44,200 $ 68,700 $ 76,300 92,000 $ 217,300 $801,000 $ 85,500 $ 206,000 $ 51,000 114,000 $ $ 204,900 $ 875,400 $ 90,000 $ 185,400 $ 51,000 $ $ 114,000 $ 595,000 $ 690,000 $801,000 $ 875,400 Required: What is the acid-test ratio at the end of this year? (Round your answer to 2 decimal places.)

Markus Company's common stock sold for $5.25 per share at the end of this year. The company paid preferred stock dividends totaling $4,400 and a common stock dividend of $1.24 per share this year. It also provided the following data excerpts from this year's financial statements Cash Accounts receivable Inventory Current assets Total assets Current liabilities Total liabilities Preferred stock Common stock, $1 par value Total stockholders' equity Total liabilities and stockholders' equity Sales (all on account) Cost of goods sold Gross margin Net operating income Interest expense Net income This Year $1,095,000 $ 635,100 $ 459,900 $ 313,875 Acid-test ratio $ 5 15,500 186,800 Ending Balance Beginning Balance 49,000 92,000 $ $ 44,200 $ 68,700 $ 76,300 92,000 $ 217,300 $801,000 $ 85,500 $ 206,000 $ 51,000 114,000 $ $ 204,900 $ 875,400 $ 90,000 $ 185,400 $ 51,000 $ $ 114,000 $ 595,000 $ 690,000 $801,000 $ 875,400 Required: What is the acid-test ratio at the end of this year? (Round your answer to 2 decimal places.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Markus Company's common stock sold for $5.25 per share at the end of this year. The company paid preferred stock dividends totaling $4,400 and a common stock dividend of $1.24 per share this year. It also provided the following data excerpts from this year's financial statements Cash Accounts receivable Inventory Current assets Total assets Current liabilities Total liabilities Preferred stock Common stock, $1 par value Total stockholders equity Total liabilities and stockholders' equity Sales (all on account) Cost of goods sold Gross margin Net operating income Interest expense Net income This Year $1,095,000 $ 635,100 $ 459,900 $ 313,875 Acid-test ratio S $ 15,500 186,800 Ending Balance Beginning Balance $ $ $ $ $ $ 49,000 44,200 92,000 $ 68,700 76,300 $ 92,000 217,300 $ 204,900 801,000 $ 875,480 85,500 $ 90,000 $ 205,000 $ 185,400 $ 51,000 $ 51,000 $ 114,000 $ 114,000 $ 595,000 $ 690,000 $801,000 $ 875,400 $ Required: What is the acid-test ratio at the end of this year? (Round your answer to 2 decimal places.)
Transcribed Image Text:Markus Company's common stock sold for $5.25 per share at the end of this year. The company paid preferred stock dividends totaling $4,400 and a common stock dividend of $1.24 per share this year. It also provided the following data excerpts from this year's financial statements Cash Accounts receivable Inventory Current assets Total assets Current liabilities Total liabilities Preferred stock Common stock, $1 par value Total stockholders equity Total liabilities and stockholders' equity Sales (all on account) Cost of goods sold Gross margin Net operating income Interest expense Net income This Year $1,095,000 $ 635,100 $ 459,900 $ 313,875 Acid-test ratio S $ 15,500 186,800 Ending Balance Beginning Balance $ $ $ $ $ $ 49,000 44,200 92,000 $ 68,700 76,300 $ 92,000 217,300 $ 204,900 801,000 $ 875,480 85,500 $ 90,000 $ 205,000 $ 185,400 $ 51,000 $ 51,000 $ 114,000 $ 114,000 $ 595,000 $ 690,000 $801,000 $ 875,400 $ Required: What is the acid-test ratio at the end of this year? (Round your answer to 2 decimal places.)
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