11 and 12 are wrong. what are the right answers?
Measures of liquidity, solvency, and profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $82.60 on December 31, 2012. Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 2041 2012 2011 Retained earnings, January 1 $3,704,000 $3,264,000 Net income $ 600,000 $550.000 Dividends: On preferred stock (10,000) (10,000) On common stock (100,000) (100,000) Increase in retained earnings $ 490,000 $440,000 Retained earnings, December 31 $4,194,000 $3,704.000 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 2012 and 2011 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Operating income Other revenue and expenses Other revenue Other expense (interest) Income before income tax expense Income tax expense Newcome 2012 $ 10,850,000 16,000,000) $4,850,000 $ 2,170,000) (1,627.500) 53.797.500) $ 1,052,500 2011 $10,000,000 15.450,000) $ 4,550,000 $ 12,000,000) (1,500,000) $ 3.500.000) $ 1.050,000 99,500 (132.000) $1,020,000 (420,000) $ 600,000 20,000 (120,000) $ 950,000 (400.000) $ 550,000 Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 2041 2012 2011 Assets Current assets: Cash Marketable securities $1,050,000 301,000 $950,000 420,000 Check My Work Previous Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 2041 2012 2011 Current assets: Cash $1,050,000 $950,000 Marketable securities 301.000 420,000 Accounts receivable (net) 585,000 500,000 Inventories 420,000 380,000 Prepaid expenses 108,000 20,000 Total current assets $ 2,464,000 $2,270,000 Long-term investments 800,000 800,000 Property, plant, and equipment (net) 5,760,000 5,184,000 Total assets $ 9,024,000 $8,254,000 Liabilities Current liabilities $ 880,000 $ 800,000 Long-term liabilities: Mortgage note payable, 6% $ 200.000 $0 Bonds payable, 4% 3,000,000 3,000,000 Total long-term liabilities $ 3.200,000 $3,000,000 Total abilities $4,000,000 $3,800,000 Stockholders' Equity Preferred 4% stock, ss par $ 250,000 $ 250,000 Common stock, $par 500,000 500,000 Retained earnings 4.194,000 3.704,000 Total stockholders' equity $ 4,964,000 $4,454,000 Total liabilities and stockholders' equity $ 9,024,000 $8.254,000 Determine the following measures for 2012. Round to one decimal place, including percentages, except for per-share amounts, which should be rounded to the nearest cent. 1. Working Capital 1.584,000 2. Current ratio 2.8 3. Quick ratio 2.2 4. Accounts receivable tumover 20 5. Number of days' sales in receivables 18.3 6. Inventory turnover 15 7. Number of days' sales in inventory 243 8. Ratio of foxed assets to long-term liabilities 18 9. Ratio of abilities to stockholders' equity 10. Times interest earned 8.7 11. Asset turnover 1.3 X 12. Return on total assets 6.9 X 13. Return on stockholders' equity 128 14. Return on common stockholders' equity 15. Earnings per share on common stock $ 5.9 16. Price-earnings ratio 14 17. Dividends per share of common stock 5
