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Earnings per Share, Price-Earnings Ratio, Dividend Yield The following information was taken from the financial statements of Tolbert Inc. for December 31 of the current fiscal year: Common stock, $10 par value (no change $1,400,000 during the year) Preferred $10 stock, $200 par (no change 4.000.000 during the year) The net income was $452,000 and the declared dividends on the common stock were $35,000 for the current year. The market price of the common stock is $14.40 per share. For the common stock, determine (a) the earnings per share, (b) the price-earnings ratio, (c) the dividends per share, and (d) the dividend yield. If required, round your answers to two decimal places. a. Earnings per Share $ b. Price-Earnings Ratio c. Dividends per Share $ d. Dividend Yield L % Measures of liquidity, Solvency, and Profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 51 on December 31, 20Y2. Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 2012 2011 Retained earnings, January 1 $1,658,800 $1,399,000 Net income 369,200 286,600 Total $2,028,000 $1,685,600 Dividends: On preferred stock $6,300 $6,300 On common stock 20,500 20,500 Total dividends $26,800 $26,800 Retained earnings, December 31 $2,001,200 $1,658,800 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 2012 and 2041 2042 2041 Sales Cost of goods sold Gross profit $2,227,230 825,630 $1,401,600 $463,690 394,990 $2,052,060 759,580 $1,292,480 $571,460 335,620 $907,080 Selling expenses Administrative expenses Total operating expenses Income from operations Other revenue $858,680 $542,920 28,580 $385,400 24,600 $410,000 84,000 $571,500 152,000 Other expense (interest) Income before income tax Income tax expense $419,500 50,300 $326,000 39,400 Net income $369,200 $286,600 Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 2012 2011 Assets Current assets Cash Marketable securities Accounts receivable (net) Inventories Prepaid expenses Total current assets Long-term investments Property, plant, and equipment (net) Total assets $361,950 $364,640 547,810 604,270 423,400 401,500 321,200 248,200 68,472 72,930 $1,722,832 $1,691,540 1,452,448 553,171 2,090,000 1,881,000 $5,265,280 $4,125,711 Liabilities Current liabilities $594,080 $646,911 $0 $850,000 1,050,000 1,050,000 $1,900,000 $1,050,000 $2,494,080 $1,696,911 Long-term liabilities: Mortgage note payable, 8% Bonds payable, 8% Total long-term liabilities Total liabilities Stockholders' Equity Preferred $0.70 stock, $40 par Common stock, $10 par Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $360,000 $360,000 410,000 410,000 2,001,200 1,658,800 $2,771,200 $2,428,800 $5,265,280 $4,125,711 Determine the following measures for 20Y2, rounding to one decimal place, except for dollar amounts, which should be rounded to the nearest cent. Use the rounded answer of the requirement for subsequent requirement, if required. Assume 365 days a year. 1. Working capital 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover 5. Number of days' sales in receivables days days 6. Inventory turnover 7. Number of days' sales in inventory 8. Ratio of fixed assets to long-term liabilities 9. Ratio of liabilities to stockholders' equity 10. Times interest earned 11. Asset turnover 12. Return on total assets $ 13. Return on stockholders' equity 14. Return on common stockholders' equity 15. Earnings per share on common stock 16. Price-earnings ratio 17. Dividends per share of common stock 18. Dividend yield $ %
