Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I am lost at what I am doing wrong please help! Measures of liquidity, Solvency, and Profitability The comparative financial statements of Marshall Inc. are
I am lost at what I am doing wrong please help!
Measures of liquidity, Solvency, and Profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 66 on December 31, 20Y2. Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 2041 2012 2011 $2,467,500 $2,091,700 Retained earnings, January 1 577,600 428,400 Net income Total $3,045,100 $2,520,100 Dividends: $7,000 $7,000 On preferred stock 45,600 45,600 On common stock $52,600 Total dividends $52,600 $2,992,500 $2,467,500 Retained earnings, December 31 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 2041 2042 20Y1 $3,389,840 Sales $3,679,200 1,357,800 $2,321,400 1,249,180 Cost of goods sold $2,140,660 Gross profit $777,290 662,130 Selling expenses Administrative expenses Total operating expenses $971,620 570,640 $1,542,260 $1,439,420 $881,980 $598,400 Income from operations 46,420 38,200 Other revenue $636,600 $928,400 272,000 149,600 $487,000 Other expense (interest) $656,400 Income before income tax 78,800 58,600 $428,400 Income tax expense $577,600 Net Income Marshall Inc. Comparative Balance Sheet December 31, 2012 and 2041 2012 2011 Assets Current assets Cash $864,680 $612,220 1,014,550 Marketable securities 1,308,710 Accounts receivable (net) 678,900 635,100 Inventories 511,000 394,200 Prepaid expenses 163,585 122,440 Total current assets $3,526,875 $2,778,510 924,375 Long-term investments 326,348 Property, plant, and equipment (net) 4,080,000 3,672,000 Total assets $8,531,250 $6,776,858 Liabilities Current liabilities $1,068,750 $1,369,358 Long-term liabilities: Mortgage note payable, 8% $0 $1,530,000 1,870,000 Bonds payable, 8% 1,870,000 $0 Mortgage note payable, 8% Bonds payable, 8% Total long-term liabilities $1,530,000 1,870,000 1,870,000 $3,400,000 $1,870,000 Total liabilities $4,468,750 $3,239,358 Stockholders' Equity Preferred $0.70 stock, $50 par $500,000 Common stock, $10 par $500,000 570,000 2,992,500 570,000 Retained earnings 2,467,500 Total stockholders' equity $4,062,500 Total liabilities and stockholders' equity $3,537,500 $6,776,858 $8,531,250 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 2,458,125 3.3 2. Current ratio 2.6 x 3. Quick ratio 5.6 4. Accounts receivable turnover suusequent requiremenil, 2,458,125 1. Working capital 3.3 2. Current ratio 2.6 X 3. Quick ratio 5.6 4. Accounts receivable turnover 65.2 days 5. Number of days' sales in receivables 3 6. Inventory turnover 123 X days 7. Number of days' sales in inventory 1.2 8. Ratio of fixed assets to long-term ilabilities 2.1 X 9. Ratio of liabilities to stockholders' equity 3.4 10. Times interest earned 48.1 X 11. Asset turnover 6.77 X % 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 stockStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started