Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Measures of liquidity, Solvency, and Profitability he comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Measures of liquidity, Solvency, and Profitability he comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 60 on December 31, 20Y2. Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Retained earnings, January 1 Net income Total Dividends $ 1,711,500 364,000 $2,075,500 $ 1,459,600 298,900 $ 1,758,500 On preferred stock On common stock Total dividends s 11,900 35,100 47,000 2,028,500 11,900 35,100 47,000 1,711,500 Retained earnings, December 31 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 $ 2,127,690 Sales Cost of goods sold Gross proft Selling expenses Administrative expenses Total operating expenses Income from operations $ 2,309,355 854,100 $ 1,455,255 $ 495,680 422,255 $917,935 s 537,320 28,280 s 565,600 152,000 s 413,600 49,600 s 364,000 785,770 $ 1,341,920 $ 594,320 349,040 $943,360 $ 398,560 25,440 Other revenue s 424,000 Other expense (interest) Income before income tax Income tax expense Net income 84,000 s 340,000 41,100 s 298,900 Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y 20Y2 20Y1 Assets Current assets Cash Marketable securities Accounts receivable (net) Inventories Prepaid expenses $438,610 663,850 416,100 321,200 82,985 $ 1,922,745 1,038,405 2,280,000 s 5,241,150 369,340 612,060 394,200 248,200 73,870 $1,697,670 Total current assets Long-term investments Property, plant, and equipment (net) Total assets 90,998 2,052,000 s 4,140,668 Liabilities Current liabilities $ 582,650 $ 649,168 Long-term liabilities: Mortgage note payable, 8% $ 850,000 Bonds payable, 8% 1,050,000 1,050,000 Bonds payable, 8% 1,050,000 otal long-term liabilities Total liabilities 1,050,000 $ 1,050,000 $2,482,650 1,699,168 $1,900,000 Stockholders' Equity Preferred so.70 stock, $20 par 340,000 390,000 2,028,500 $ 2,758,500 s 5,241,150 340,000 390,000 1,711.500 2,441,500 s4,140,668 Common stock, $10 par Retained earnings Total stockholders' equity Total liabilities and stockholders equity Required Determine the following masures for 20v2, 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 reauired.Assume 365 days a year 1. Working capita 2. Current ratio 3. Quick rato 4. 5. 6. ccounts recelvableunover umber of days, ss'etin receivables avs days 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover 5. Number of days' sales in receivables 6. Inventory turnover days 7. Number of days' sales in inventory days Ratio of fixed assets to long-term liabilities 8. 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 vield

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Frank Woods Business Accounting

Authors: Frank Wood, Alan Sangster

9th Edition

0273655523, 9780273655527

More Books

Students also viewed these Accounting questions

Question

3 When might constructivist view of self be not relevant and why?

Answered: 1 week ago