Instructions The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $82 80 on December 31, 20Y2 Marshall Inc Comparative Betained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 2012 2011 1 Retained earnings, lanuary 1 $3,692,000.00 610,000.00 $4,502,000.00 $3,262,000.00 540,000.00 $3,807,000.00 1 Net Income Total 5 Dividende $10,000.00 On preferred stock $10,000.00 100,000.00 100,000.00 7 On common stock $110.000.00 Total dividends Retained earnings, December 31 $110,000.00 $3,692,000.00 $4,192,000.00 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 1 20Y2 20Y1 2 Sales $10,860,000.00 $10,000,000.00 3 Cost of goods sold 6,000,000.00 5,460,000.00 $4,860,000.00 $4,540,000.00 4 Gross profit 5 Selling expenses $2,160,000.00 $2,000,000.00 6 Administrative expenses 1,627,500.00 1,500,000.00 7 Total operating expenses $3,787,500.00 $3,500,000.00 8 Income from operations $1,072,500.00 $1,040,000.00 9 Other revenue 99,500.00 20,000.00 10 $1,172,000.00 $1,060,000.00 11 Other expense (interest) 132,000.00 120,000.00 12 Income before income tax $1,040,000.00 $940,000.00 15 Income tax expense 430,000.00 400,000.00 14 Net income $610,000.00 $540,000.00 Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 1 20Y2 20Y1 2 Assets 3 Current assets: 4 Cash $1,050,000.00 $950,000.00 5 Marketable securities 301,000.00 420,000.00 6 Accounts receivable (net) 584,000.00 500,000.00 380,000.00 7 Inventories 430,000.00 8 Prepaid expenses 109,000.00 20,000.00 9 Total current assets $2,474,000.00 $2,270,000.00 10 Long-term investments 800,000.00 800,000.00 11 Property, plant, and equipment (net) 5,750,000.00 5,184,000.00 12 Total assets $9,024,000.00 $8,254,000.00 13 Liabilities 14 Current liabilities $882,000.00 $812,000.00 Instructions 11 Property, plant, and equipment (net) 5,750,000.00 5,184,000.00 12 Total assets $9,024,000.00 $8,254,000.00 13 Liabilities 14 Current liabilities $882,000.00 $812,000.00 15 Long-term liabilities: $200,000.00 $0.00 3,000,000.00 3,000,000.00 18 $3,200,000.00 $3,000,000.00 16 Mortgage note payable, 6%, 17 Bonds payable, 4% Total long-term liabilities 19 Total Liabilities Stockholders' Equity 21 Preferred 4% stock, $5 par 22 Common stock, 55 par $4,082,000.00 $3,812,000.00 20 $250,000.00 $250,000.00 500,000.00 500,000.00 25 Retained earnings 4,192,000.00 3,692,000.00 24 Total stockholders' equity $4,442,000.00 $4,942,000.00 $9,024,000.00 25 Total liabilities and stockholders' equity $8,254,000.00 Instructions Determine the following measures for 20Y2 (round to one decimal place, including percentages, except for per-share amounts): Assume a 365-day year. 1. Working capital 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover 5. Number of days sales in receivables 6. Inventory tumover 7. Number of days tales In Inventory 8. Ratio of fixed assets to long-term liabilities 9. Ratio Habilities to stockholdeta eguity 10. Timesinterest.comed 11. Anoturnover 12. Return on total assets 13. Retum on stockholders equity 14. Ratum on common stockholders guty 15. Earnings. nor share.on.common stock 16. Price.earnings ratio 17. Dividenda per share of common stock 1. Dividend vial
