eBook 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 $ 56 on December 31, 2012 Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 2012 and 20Y1 20Y2 20Y1 Retained earnings, January 1 $ 1,943,900 $ 1,653,900 Net Income 426,000 338,800 Total $ 2,374,900 $ 1,992,700 Dividends 9,000 $ 7,000 On preferred stock On common stock Total dividends 36,800 36,800 $ 43,800 $ 43,800 $ 1,940,900 Retained earnings, December 31 $ 2,331, 100 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 2012 and 2041 AY 2 Audi 3:03 PM eBook Calculator Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 2041 2012 2011 Sales $ 2,449,150 $2,256,540 Cost of goods sold 919,800 846,220 Gross profit $ 1,529,350 $ 1,410,320 $ 499,530 $ 610,760 425,530 Selling expenses Administrative expenses Total operating expenses Income from operations 358,700 969,460 925,060 $ 604,230 31,810 $ 440,860 Other Income 28,140 $636,100 $ 469,000 84,000 Other expense (interest) Income before income tax 152,000 $ 484,100 $385,000 Income tax expense 58,100 46,200 Net income $ 426,000 $ 338,800 Marshall Inc. eBook Calculator Marshall Inc. Comparative Balance Sheet December 31, 2012 and 20Y1 Dec. 31, 2012 Dec 31, 2011 Assets Current assets Cash $ 424,890 $ 414,140 643,070 686,280 Marketable securities Accounts receivable (net) Inventories 459,900 430,700 350,400 262,800 Prepaid expenses 80,380 82,830 $ 1,958,60 $ 1,876,750 819,699 1,695,340 Total current assets Long-term investments Property, plant, and equipment (net) Total assets 2,090,000 1,881,000 $5,743,980 $ 4,577,449 Liabilities $ 652,880 $ 718,549 Current liabilities Long-term liabilities Mortgage note payable, 8 % $0 $ 850,000 1,050,000 Bonds payable, 8 % 1,050,000 LARRA CLARADA 3:04 PM eBook Calculator Long-term liabilities $0 Mortgage note payable, 8 % Bonds payable, 8 % $ 850,000 1,050,000 1,050,000 Total long-term liabilities $ 1,900,000 $ 1,050,000 Total liabilities $ 2,552,880 $ 1,768,549 Stockholders' Equity Preferred $ 0.70 stock, $ 40 par $ 400,000 $ 400,000 Common stock, $ 10 par 460,000 460,000 Retained earnings 2,331,100 1,948,900 Total stockholders' equity $ 3,191,100 $ 2,808,900 Total liabilities and stockholders' equity $ 5,743,90 $ 4,577,449 Required: Determine the following measures for 2012, 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. 1. Working capital 69 ENG 3:04 PM 7A2020 eBook Calculator 1. Working capital 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover days 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 days 9. Ratio of liabilities to stockholders' equity 10. Times interest eamed
