1. Marshall Inc.Comparative Retained Earnings StatementFor the Years Ended December 31, 20Y2 and 20Y120Y220Y1Retained earnings, January 1$ 2,452,150$ 2,082,050Net income532,000426,400Total$ 2,984,150$ 2,508,450DividendsOn preferred stock$ 9,100$ 9,100On common stock47,20047,200Total dividends$ 56,300$ 56,300Retained earnings, December 31$ 2,927,850$ 2,452,150
3. Marshall Inc.Comparative Income StatementFor the Years Ended December 31, 20Y2 and 20Y120Y220Y1Sales$ 3,510,205$ 3,234,090Cost of goods sold1,289,9101,186,720Gross profit$ 2,220,295$ 2,047,370Selling expenses$ 773,940$ 929,670Administrative expenses659,285545,990Total operating expenses1,433,2251,475,660Income from operations$ 787,070$ 571,710Other income41,43036,490$ 828,500$ 608,200Other expense (interest)224,000123,200Income before income tax$ 604,500$ 485,000Income tax expense72,50058,600Net income$ 532,000$ 426,400
5. Marshall Inc.Comparative Balance SheetDecember 31, 20Y2 and 20Y1Dec. 31, 20Y2Dec. 31, 20Y1AssetsCurrent assetsCash$ 587,780$ 489,590Marketable securities889,620811,320Accounts receivable (net)613,200576,700Inventories467,200365,000Prepaid expenses111,20897,920Total current assets$ 2,669,008$ 2,340,530Long-term investments1,642,907344,086Property, plant, and equipment (net)3,360,0003,024,000Total assets$ 7,671,915$ 5,708,616LiabilitiesCurrent liabilities$ 834,065$ 606,466Long-term liabilitiesMortgage note payable, 8 %$ 1,260,000$ 0Bonds payable, 8 %1,540,0001,540,000Total long-term liabilities$ 2,800,000$ 1,540,000Total liabilities$ 3,634,065$ 2,146,466Stockholders' EquityPreferred $ 0.70 stock, $ 40 par$ 520,000$ 520,000Common stock, $ 10 par590,000590,000Retained earnings2,927,8502,452,150Total stockholders' equity$ 4,037,850$ 3,562,150Total liabilities and stockholders' equity$ 7,671,915$ 5,708,616
6. Required:
7. Determine the following measures for 20Y2, 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.
8. 1.Working capital$2.Current ratio3.Quick ratio4.Accounts receivable turnover5.Number of days' sales in receivablesdays6.Inventory turnover7.Number of days' sales in inventorydays8.Ratio of fixed assets to long-term liabilities9.Ratio of liabilities to stockholders' equity10.Times interest earned11.Asset turnover12.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 ratio17.Dividends per shareof common stock$18.Dividend yield%