C0OON Calculator Measures of liquidity, Solvency and Profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall Inc. common stock was $ 62 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 $ 3,572,800 $ 3,012,600 Net income 617.000 851,200 $ 4,424,000 Total $ 3,629,600 Dividends On preferred stock $ 13,300 $ 13,300 43,500 On common stock 43,500 Total dividends $ 56,800 $ 4,367,200 $ 56,800 $ 3.572,800 Retained earnings, December 31 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 2012 and 2041 2012 2011 - O eBook Calculator Marshall Inc. Comparative Income Statement For the Years Ended December 31, 2012 and 2041 2012 2011 $4,597,175 $ 4,235,660 1,571,540 1,708,200 $ 2,888,975 $ 2,664,120 $916,080 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Income from operations Other income $ 1,169,460 686,820 780,365 1,696,445 1,856,280 $1,192,530 $ 807,840 51,560 62,770 $ 1,255,300 $ 859,400 158,400 Other expense (interest) Income before income tax 288,000 $ 967,300 $ 701,000 Income tax expense 116,100 84,000 Net Income $ 851,200 $ 617.000 Check My Work c i Marshall Inc. Comparative Balance Sheet December 31, 2012 and 2041 Dec. 31, 2012 Assets Dec 31, 2011 Current assets Cash $ 965,850 $ 817,420 1,237,180 Marketable securities Accounts receivable (net) Inventories 1,600,560 861,400 810,300 642,400 496,400 Prepaid expenses Total current assets 154,656 $ 3,713,056 2,761,904 Long-term investments Property, plant, and equipment (net) 193,170 $ 4,066,280 1,963,487 3,888,000 $ 9,917,767 4,320,000 Total assets $ 10,794,960 Liabilities Current liabilities $ 1,197,760 $ 2,734,967 Long-term liabilities Mortgage note payable, 8 % $ 1.620.000 $0 Check My Wor dud $1,620,000 $0 1,980,000 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 $ 3,600,000 $ 4,797,760 1,980,000 $1,980,000 $ 4,714,967 $760,000 $760,000 870,000 4,367,200 870,000 3,572,800 $5,202,800 $ 5,997,200 Total liabilities and stockholders' equity $ 10,794,960 $ 9,917,767 Required: Determine the following measures for 2012, rounding to one decimal place, except for dollar amounts, which should be the rounded answer of the requirement for subsequent requirement, if required. Assume 365 days a year. 1. Working capital 2,515,296 2. Current ratio 3.1 3. Quick ratio 2.4 4. Accounts receivable turnover 5.5 5. Number of daysales in receivables 66.4 days Check My Work 8. eBook Calculator 2. Current ratio 3.1 2.4 5.5 66.4 days 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 earned 3 121.70 days 1.2 0.8 4.4 11. Asset turnover
