| For the Years Ended December 31, 20Y2 and 20Y1 | 1 | | 20Y2 | 20Y1 | | 2 | Retained earnings, January 1 | $3,692,000.00 | $3,262,000.00 | | 3 | Net income | 610,000.00 | 540,000.00 | | 4 | Total | $4,302,000.00 | $3,802,000.00 | | 5 | Dividends: | | | | 6 | On preferred stock | $10,000.00 | $10,000.00 | | 7 | On common stock | 100,000.00 | 100,000.00 | | 8 | Total dividends | $110,000.00 | $110,000.00 | | 9 | Retained earnings, December 31 | $4,192,000.00 | $3,692,000.00 | | 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 | Gross profit | $4,860,000.00 | $4,540,000.00 | | 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 | | 13 | 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 | | 7 | Inventories | 430,000.00 | 380,000.00 | | 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 | | 15 | Long-term liabilities: | | | | 16 | Mortgage note payable, 6%, | $200,000.00 | $0.00 | | 17 | Bonds payable, 4%, | 3,000,000.00 | 3,000,000.00 | | 18 | Total long-term liabilities | $3,200,000.00 | $3,000,000.00 | | 19 | Total liabilities | $4,082,000.00 | $3,812,000.00 | | 20 | Stockholders Equity | | | | 21 | Preferred 4% stock, $5 par | $250,000.00 | $250,000.00 | | 22 | Common stock, $5 par | 500,000.00 | 500,000.00 | | 23 | Retained earnings | 4,192,000.00 | 3,692,000.00 | | 24 | Total stockholders equity | $4,942,000.00 | $4,442,000.00 | | 25 | Total liabilities and stockholders equity | $9,024,000.00 | $8,254,000.00 | 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 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 | Questions Shaded cells have feedback. 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 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 | % | |
