Required Information 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 $3.50 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: Cash Accounts receivable Inventory Current assets Total assets Current liabilities Total liabilities $ 55,500 $ 136,800 Ending Balance Beginning Balance $ 35,000 $ 34,000 $ 70,000 $ 55,000 $ 60,700 $ 70,000 $ 165,700 $ 159,000 $ 557,000 $ 586,800 $ 67,500 $ 152,000 $ 133,000 $ 133,000 $ 405,000 $ 450,000 Total liabilities and stockholders' equity $ 557,000 $ 586,800 This Year Sales (all on account) Cost of goods sold $ 825,000 $ 478,500 Common stock, $1 par value Total stockholders' equity Gross margin Net operating income Interest expense Net income $ 346,500 $ 194,250 $ 10,500 $ 128,625 Foundational 14-8 (Algo) 8. What is the acid-test ratio at the end of this year? (Round your answer to 2 decimal places.) Acid-test ratio
Required Information 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 $3.50 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: Cash Accounts receivable Inventory Current assets Total assets Current liabilities Total liabilities $ 55,500 $ 136,800 Ending Balance Beginning Balance $ 35,000 $ 34,000 $ 70,000 $ 55,000 $ 60,700 $ 70,000 $ 165,700 $ 159,000 $ 557,000 $ 586,800 $ 67,500 $ 152,000 $ 133,000 $ 133,000 $ 405,000 $ 450,000 Total liabilities and stockholders' equity $ 557,000 $ 586,800 This Year Sales (all on account) Cost of goods sold $ 825,000 $ 478,500 Common stock, $1 par value Total stockholders' equity Gross margin Net operating income Interest expense Net income $ 346,500 $ 194,250 $ 10,500 $ 128,625 Foundational 14-8 (Algo) 8. What is the acid-test ratio at the end of this year? (Round your answer to 2 decimal places.) Acid-test ratio
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
Rahul
![Required Information
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 $3.50 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:
Cash
Accounts receivable
Inventory
Current assets
Total assets
Current liabilities
Total liabilities
$ 55,500
$ 136,800
Ending Balance
Beginning Balance
$ 35,000
$ 34,000
$ 70,000
$ 55,000
$ 60,700
$ 70,000
$ 165,700
$ 159,000
$ 557,000
$ 586,800
$ 67,500
$ 152,000
$ 133,000
$ 133,000
$ 405,000
$ 450,000
Total liabilities and stockholders' equity
$ 557,000
$ 586,800
This Year
Sales (all on account)
Cost of goods sold
$ 825,000
$ 478,500
Common stock, $1 par value
Total stockholders' equity
Gross margin
Net operating income
Interest expense
Net income
$ 346,500
$ 194,250
$ 10,500
$ 128,625
Foundational 14-8 (Algo)
8. What is the acid-test ratio at the end of this year? (Round your answer to 2 decimal places.)
Acid-test ratio](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8ff226ee-bd8a-4143-a8fe-93e8e3d9129c%2Fbf605a21-a051-465e-bed6-249ac7a54f2e%2Fzp64gm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required Information
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 $3.50 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:
Cash
Accounts receivable
Inventory
Current assets
Total assets
Current liabilities
Total liabilities
$ 55,500
$ 136,800
Ending Balance
Beginning Balance
$ 35,000
$ 34,000
$ 70,000
$ 55,000
$ 60,700
$ 70,000
$ 165,700
$ 159,000
$ 557,000
$ 586,800
$ 67,500
$ 152,000
$ 133,000
$ 133,000
$ 405,000
$ 450,000
Total liabilities and stockholders' equity
$ 557,000
$ 586,800
This Year
Sales (all on account)
Cost of goods sold
$ 825,000
$ 478,500
Common stock, $1 par value
Total stockholders' equity
Gross margin
Net operating income
Interest expense
Net income
$ 346,500
$ 194,250
$ 10,500
$ 128,625
Foundational 14-8 (Algo)
8. What is the acid-test ratio at the end of this year? (Round your answer to 2 decimal places.)
Acid-test ratio
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