j. Paid cash for prepaid expenses, $200,000. OBJ. 3, 4, 5 PR 17-4B Measures of liquidity, solvency and profitability ilities The comparative financial statements of Stargel Inc. are as follows. The market price of Stargel common stock was $119.70 on December 31, 20Y2. 20Y1 $4,545,000 925,000 $5,470,000 Stargel Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 2041 20Y2 Retained earnings, January 1.. $5,375,000 Net income 900,000 Total $6,275,000 Dividends: Preferred stock dividends. $ 45,000 Common stock dividends. 50,000 Total dividends 95,000 Retained earnings, December 31 $6,180,000 $ 45,000 50,000 95,000 $5,375,000 Chapter 17 Financial Statement Analysis 877 Sales Cost of goods sold Gross profit. Selling expenses Administrative expenses. Total operating expenses Income from operations Other revenue. Stargel Inc. Comparative Income Statement For the Years Ended December 31, 2012 and 2041 20Y2 $10,000,000 5,350,000 $ 4,650,000 $ 2,000,000 1,500,000 $ 3,500,000 $ 1,150,000 150,000 $ 1,300,000 170,000 $ 1,130,000 230,000 $ 900,000 20Y1 $9,400,000 4,950,000 $4,450,000 $1,880,000 1,410,000 $3,290,000 $1,160,000 140,000 $1,300,000 150,000 $1,150,000 225,000 $ 925,000 Other expense (interest) Income before income tax Income tax expense Net income Stargel Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 2012 2011 Assets Current assets: Cash $ 500,000 $400,000 Stargel Inc. Comparative Balance Sheet December 31, 2012 and 2011 2012 2041 $ 500,000 1,010,000 740,000 1.190.000 250.000 $3,690,000 2.350,000 3,740.000 59.780,000 $ 400.000 1,000,000 510,000 950.000 229,000 $3,089,000 2.300.000 3,366,000 $8,755,000 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, 10%. Bonds payable, 10% Total long-term liabilities Total liabilities ... Stockholders' Equity Preferred $0.90 stock, $10 par Common stock, $5 par. Retained earnings Total stockholders' equity Total liabilities and stockholders' equity. $ 900,000 $ 880,000 $ 200,000 1,500,000 $1,700,000 $2,600,000 s 0 1.500.000 $1,500,000 $2,380,000 $ 500,000 500,000 6.180,000 $7,180,000 $9,780,000 $ 500,000 500,000 5,375,000 $6,375,000 $8,755,000 Instructions Determine the following measures for 2012, rounding to one decimal place including percentages, 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 (Continued) Chapter 17 Financial Statement Analysis 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 32.9% PR 17-5B Solvency and profitability trend analysis Crosby Company has provided the following comparative informati