Ch 17-3 Exercises and Problems Measures of liquidity, Solvency, and Profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 61 on December 31, 20Y2. Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 2012 and 2041 2012 2011 Retained earnings, January 1 $4,756,450 1,095,200 $4,020,950 823,600 Net income $5,851,650 $4,844,550 Total Dividends: On preferred stock On common stock $14,000 74,100 $88,100 $5,763,550 $14,000 74,100 $88,100 $4,756,450 Total dividends Retained earnings, December 31 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 2012 2011 Sales $6,190,400 2,248,400 $5,703,480 2,068,530 Cost of goods sold Gross profit Selling expenses $3,942,000 $1,268,640 1,080,690 $3,634,950 $1,595,020 936,750 Administrative expenses Total operating expenses Income from operations $2,349,330 $1,592,670 83,830 $2,531,770 $1,103,180 70,420 Other revenue Check My Work 2 more Check My Work uses remaining Previous Assignment Score: 0.0% Email Instructor Save and Exit Submit Assignment for Grading Ch 17-3 Exercises and Problems Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 2041 2012 2011 Sales Cost of goods sold $6,190,400 2,248,400 $3,942,000 $1,268,640 1,080,690 $5,703,480 2,068,530 $3,634,950 Gross profit Selling expenses Administrative expenses $1,595,020 936,750 $2,531,770 $2,349,330 Total operating expenses Income from operations Other revenue $1,592,670 $1,103,180 70,420 83,830 $1,676,500 432,000 $1,173,600 237,600 Other expense (interest) Income before income tax $1,244,500 149,300 $936,000 112,400 Income tax expense Net income $1,095,200 $823.600 Marshall Inc. Comparative Balance Sheet December 31, 2012 and 2041 2012 Assets 2011 Current assets Cash Marketable securities Accounts receivable (net) Inventories $1,311,220 1,984,550 1,204,500 905,200 $1,117,240 1,851,430 1,131,500 700,800 Check My Work 2 more Check My Work uses remaining Previous Assignment Score: 0.0% Email Instructor Save and Exit Submit Assignment for Grading Ch 17-3 Exercises and Problems Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 2041 2042 Assets 2041 Current assets Cash Marketable securities Accounts receivable (net) Inventories $1,311,220 1.984,550 1,204,500 905,200 248,074 $5,653,544 3,423,201 5,940,000 Prepaid expenses $1,117,240 1,851.430 1,131,500 700,800 223,450 $5.024.420 1,884,264 5,346,000 $12,254,684 Total current assets Long-term investments Property, plant, and equipment (net) Total assets $15,016,745 Liabilities Current liabilities $1,713,195 $2,388,234 Long-term liabilities: Mortgage note payable, 8% $2,430,000 2,970,000 Bonds payable, 8% Total long-term liabilities $5,400,000 2,970,000 $2,970,000 $5,358,234 $7,113,195 Total liabilities Stockholders' Equity Preferred $0.70 stock, $50 par Common stock, $10 par $1,000,000 1,140,000 5,763,550 $7,903,550 $15,016,745 $1,000,000 1,140,000 4,756,450 Retained earnings Total stockholders' equity $6,896.450 $12,254,684 Total liabilities and stockholders' equity Required: Check My Work 2 more Check My Work uses remaining Previous Assignment Score: 0.0% Email Instructor Save and Exit Submit Assignment for Grading Total stockholders' equity $7,903,550 $6,896,450 Total liabilities and stockholders' equity $15,016,745 $12,254,684 Required: 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. days 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 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 Check My Work 2 moro Check My Work uses remaining Previous Assignment Score: 0.0% Email Instructor Save and Exit Submit Assignment for Grading