5. Number of days' n receivables, 18.3 EXCEL TEMPLATE Obj. 3, 4,5 PR 14-4A 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, 20Y2. Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 2012 20Y1 Retained earnings, January 1............ $3,704,000 $3,264,000 Net income...... 600,000 550,000 Total $4,304,000 $3,814,000 Dividends: On preferred stock ......... $ 10,000 $ 10,000 On common stock. ............ 100,000 100,000 Total dividends $ 110,000 $ 110,000 Retained earnings, December 31 ..... $4,194,000 $3,704,000 Chapter 14 Financial Statement Analysis Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 2041 2012 2011 Sales ........... . . .. $10,850,000 $10,000,000 Cost of goods sold... 6,000,000 $450,000 Gross profit................................ $ 4850.000 $4550,000 Selling expenses ....................... 52170,000 $2,000,000 Administrative expenses.* *** 1,627,500 1,500,000 Total operating expenses ............. $ 3,797,500 $ 3.500.000 Income from operations .... $ 1,052,500 $ 1,050,000 Other income..... 99.500 20,000 $ 1,152.000 5 1,070,000 Other expense interest) ........................ 132,000 120,000 Income before income tax $ 1,020 000 $ 950.000 Income tax expense.... ******** 420,000 400.000 Net income... $ 600,000 $ 550,000 Marshall Inc Comparative Balance Sheet December 31, 20Y2 and 2011 2012 2011 $1.050,000 301.000 585.000 420,000 1OR.000 $ 2464000 800.000 5,760,000 $ 9,024,000 $ 950.000 420.000 500.000 380,000 20,000 $2.270.000 800,000 5,184,000 $8,254,000 Current assets Cash . . Marketable securities.... Accounts receivable net).... Inventories. Prepaid expenses.. Total current assets ....... Long-term investments ............... Property, plant, and equipment (net). Total assets .......... Liabilities Current liabilities......... Long-term liabilities: Mortgage note payable, 6%........ Bends payable, 4%. ... ...... Total long-term liabilities.. Total abilities ......... Stockholders' Equity Preferred 4 stock, $5 par.... Common stock, $5 par..................... Retained earnings... Total stockholders'equity.... . Total liabilities and stockholders' equity. . $ 880,000 $800,000 . $ 200,000 3,000,000 $ 3.200,000 $ 4,080,000 $ 3,000,000 $3,000,000 $3,800,000 . $ 250,000 500.000 4,194,000 54.944,000 $9.024.000 $ 250.000 500.000 3,704,000 $4,454 000 $8,254.000 . Instructions Determine the following measures for 2012 (round to one decimal place, including percentages, except for per-share amounts): 1. Working capital 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover 5. Number of days' sales in receivables 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 eamed (Continued) Chapter 14 Financial Statement Analysis 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