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 $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: Cash Accounts receivable Inventory Current assets Total assets Current liabilities. Total liabilities Common stock, $1 par value Total stockholders' equity Total liabilities and stockholders' equity Ending Balance $ 54,500 $ 100,000 $ 79,000 $ 233,500 $ 857,000 Beginning Balance $ 47,200 $ 71,200 $ 100,000 $ 218,400 $ 938,800 $ 91,500 $ 100,500 $ 232,000 $ 208,800 $ 171,000 $ 171,000 $ 625,000 $ 730,000 $ 857,000 $ 938,800 This Year Sales (all on account) Cost of goods sold Gross margin Net operating income Interest expense Net income $ 1,195,000 $ 693,100 $ 501,900 $ 338,250 $ 16,500 $ 225,225 Foundational 14-4 (Algo) 4. What is the return on total assets (assuming a 30% tax rate)? (Round percentage answer to 1 decimal place. i.e., 0.123 should be considered as 12.3%) Return on total assets %
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 $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: Cash Accounts receivable Inventory Current assets Total assets Current liabilities. Total liabilities Common stock, $1 par value Total stockholders' equity Total liabilities and stockholders' equity Ending Balance $ 54,500 $ 100,000 $ 79,000 $ 233,500 $ 857,000 Beginning Balance $ 47,200 $ 71,200 $ 100,000 $ 218,400 $ 938,800 $ 91,500 $ 100,500 $ 232,000 $ 208,800 $ 171,000 $ 171,000 $ 625,000 $ 730,000 $ 857,000 $ 938,800 This Year Sales (all on account) Cost of goods sold Gross margin Net operating income Interest expense Net income $ 1,195,000 $ 693,100 $ 501,900 $ 338,250 $ 16,500 $ 225,225 Foundational 14-4 (Algo) 4. What is the return on total assets (assuming a 30% tax rate)? (Round percentage answer to 1 decimal place. i.e., 0.123 should be considered as 12.3%) Return on total assets %
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 5MCQ
Related questions
Question
![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 $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:
Cash
Accounts receivable
Inventory
Current assets
Total assets
Current liabilities.
Total liabilities
Common stock, $1 par value
Total stockholders' equity
Total liabilities and stockholders' equity
Ending Balance
$ 54,500
$ 100,000
$ 79,000
$ 233,500
$ 857,000
Beginning Balance
$ 47,200
$ 71,200
$ 100,000
$ 218,400
$ 938,800
$ 91,500
$ 100,500
$ 232,000
$ 208,800
$ 171,000
$ 171,000
$ 625,000
$ 730,000
$ 857,000
$ 938,800
This Year
Sales (all on account)
Cost of goods sold
Gross margin
Net operating income
Interest expense
Net income
$ 1,195,000
$ 693,100
$ 501,900
$ 338,250
$ 16,500
$ 225,225
Foundational 14-4 (Algo)
4. What is the return on total assets (assuming a 30% tax rate)? (Round percentage answer to 1 decimal place. i.e., 0.123 should be
considered as 12.3%)
Return on total assets
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff7c53311-94bf-40b9-a280-65b2bcdf827b%2F90f3eb37-c154-468b-bda0-941e105eaef1%2Fp7qvnph_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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 $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:
Cash
Accounts receivable
Inventory
Current assets
Total assets
Current liabilities.
Total liabilities
Common stock, $1 par value
Total stockholders' equity
Total liabilities and stockholders' equity
Ending Balance
$ 54,500
$ 100,000
$ 79,000
$ 233,500
$ 857,000
Beginning Balance
$ 47,200
$ 71,200
$ 100,000
$ 218,400
$ 938,800
$ 91,500
$ 100,500
$ 232,000
$ 208,800
$ 171,000
$ 171,000
$ 625,000
$ 730,000
$ 857,000
$ 938,800
This Year
Sales (all on account)
Cost of goods sold
Gross margin
Net operating income
Interest expense
Net income
$ 1,195,000
$ 693,100
$ 501,900
$ 338,250
$ 16,500
$ 225,225
Foundational 14-4 (Algo)
4. What is the return on total assets (assuming a 30% tax rate)? (Round percentage answer to 1 decimal place. i.e., 0.123 should be
considered as 12.3%)
Return on total assets
%
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