Chapter 17 Financial Statement Analysis 873 5. Number of days les in receivables, 18.3 Excel PR 17-4A Measures of liquidity, solvency, and profitability OBJ. 3,4,5 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 larnings Statement For the Years Ended December 31, 2012 and 2011 2012 2011 Retained earnings, January 1... $3,704,000 $3,264.000 Net income 600 000 550,000 Tots $4.304.000 $3814,000 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 54,194.000 $3.704.000 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 2012 and 2011 2012 2011 Sales $10.850.000 $10.000.000 Cost of goods sold 6.000.000 5,450,000 Gross profit $ 4,850.000 $ 4550.000 Selling expenses $ 2.170.000 $ 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 revenue. 99.500 20.000 $ 1,152.000 $ 1.070,000 Other expense interest). 132.000 120.000 $ 1.020.000 $ 950.000 Income before income tax 420.000 400.000 Income tax expense. 600.000 $ 550,000 Net Income Marshall Inc. Comparative Balance Sheet December 31, 2012 and 2011 20Y2 2011 $1,050,000 301.000 585,000 420,000 108.000 $ 2,464,000 800,000 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 $ 280,000 $ 800,000 Assets 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. 0% Bonds payable 4% Total long-term liabilities Total liabilities .... Stockholders' Equity Preferred 4% stock. 55 par Common stock, 55 par Retained earnings Total stockholders' equity. Total liabilities and stockholders'equity $ 200,000 3.000.000 $3,200,000 5 4080,000 $ 0 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 54454,000 58.254.000 (Continued 874 Chapter 17 Financial Statement Analysis Instructions Determine the following measures for 20Y2, rounding to one decimal place, including per- centages, 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 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
