Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

#5,7,8,9,12,15,16,17,18 please Measures of liquidity, Solvency, and Profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

#5,7,8,9,12,15,16,17,18 please

Measures of liquidity, Solvency, and Profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 55 on December 31, 20Y2. Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 202 201 Retained earnings, January 1 $917,775 $778,325 Net income 204,400 159,400 Total $1,122,175 $937,725 Dividends: On preferred stock $6,300 $6,300 On common stock 13,650 13,650 Total dividends $19,950 $19,950 Retained earnings, December 31 $1,102,225 $917,775 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 201 202 Sales $998,080 $1,083,320 Cost of goods sold 357,290 388,360 Gross profit $640,790 $694,960 Selling expenses $272,820 $219,180 POeck My Wrk 0 more Check My Work uses remaining Retained earnings, December 31 $1,102,225 $917,775 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 202 201 Sales $1,083,320 $998,080 Cost of goods sold 388,360 357,290 Gross profit $694,960 $640,790 Selling expenses $219,180 $272,820 Administrative expenses 186,700 160,230 Total operating expenses $405,880 $433,050 Income from operations $289,080 $207,740 13,260 15,220 Other revenue $221,000 $304,300 40,000 72,000 Other expense (interest) $181,000 $232,300 Income before income tax 21,600 27,900 Income tax expense $159,400 $204,400 Net income Marshall InC. Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 202 201 Assets Current assets Cash $210,080 $219,350 Marketable securities 363,490 317,970 Accounts receivable (net) 197,100 211,700 116,800 160,600 Inventories 43,870 39,746 Prepaid expenses $940,096 $940,610 Total current assets 300,565 575,909 Long-term investments 1,170,000 1,053,000 Property, plant, and equipment (net) $2,294,175 $2,686,005 Total assets Liabilities $486,400 $293,780 Current liabilities Long-term liabilities: $0 $400,000 Mortgage note payable, 8% 500,000 500,000 Bonds payable, 8% $500,000 $900,000 Total long-term liabilities $986,400 $1,193,780 Total liabilities Stockholders' Equity $180,000 $180,000 Preferred $0.70 stock, $20 par Long-term investments 575,909 300,565 Property, plant, and equipment (net) 1,170,000 1,053,000 Total assets $2,686,005 $2,294,175 Liabilities Current liabilities $293,780 $486,400 Long-term liabilities: Mortgage note payable, 8% $400,000 $0 Bonds payable, 8% 500,000 500,000 Total long-term liabilities $900,000 $500,000 Total liabilities $1,193,780 $986,400 Stockholders' Equity Preferred $0.70 stock, $20 par $180,000 $180,000 Common stock, $10 par 210,000 210,000 Retained earnings 1,102,225 917,775 $1,492,225 $1,307,7 Total stockholders' equity Total liabilities and stockholders' equity $2,294,175 $2,686,005 Required: Determine the following measures for 20Y2, rounding to one decimal place, except for dollar amounts, which should be rounded to the requirement, if required. Assume 365 days a year. $ 646,316 1. Working capital 3.2 2. Current ratio 2.5 3. Quick ratio 5.3 4. Accounts receivable turnover Required: Determine the following measures for 20Y2, rounding to one decimal place, except for dollar amounts, which should be rounded to the nea requirement, if required. Assume 365 days a year. 1. Working capital 646,316 2. Current ratio 3.2 3. Quick ratio 2.5 4. Accounts receivable tumover 5.3 5. Number of days' sales in receivables 68.8 X days 6. Inventory turnover 2.8 7. Number of days' sales in inventory 130.3 X days 8. Ratio of fixed assets to long-term liabilities 1.9 X 0.9 X 9. Ratio of liabilities to stockholders' equity 10. Times interest earned 4.2 0.4 11. Asset turnover 8.2 X % 12. Return on total assets V% 14.6 13. Return on stockholders' equity 16.2 % 14. Return on common stockholders' equity $1 X 0.94 15. Eamings per share on common stock 58.5 X 16. Price-earnings ratio 0.06 X 17. Dividends per share of common stock X % 0.1 18. Dividend yield

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Loss Control Auditing A Guide For Conducting Fire Safety And Security Audits

Authors: E. Scott Dunlap

2nd Edition

103244293X, 978-1032442938

More Books

Students also viewed these Accounting questions

Question

Discuss the general principles of management given by Henri Fayol

Answered: 1 week ago

Question

Detailed note on the contributions of F.W.Taylor

Answered: 1 week ago

Question

Classify delivery styles by type.

Answered: 1 week ago