Measures of liquidity, solvency, and profitability Instructions Questions HI Instructions Marshall Inc Comparative Retained Earnings Statement For the Years Ended December 31, 2012 and 2041 20Y2 2011 2 Retained earnings, January 1 $5712.000.00 3 Net income $5,267,000.00 560,000.00 589.000.00 4 Total $4,301.000.00 $5,822,000.00 5. Dividends: 6 On preferred stock $10,000.00 2 On common stock 100.000,00 Total dividends $10,000.00 100,000.00 $110,000.00 $3,712,000.00 $110,000.00 9 Retained earings, December 31 $4,191,000.00 Previous Measures of liquidity, solvency, and profitability Instructions Questions Instructions UNI Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 2041 1 2012 2011 2 Sales $10.840,000.00 $10,000,000.00 5.440,000.00 6,000,000.00 $4,840,000.00 $4,560,000.00 3 Cost of goods sold Gross profit Selling expenses & Administrative expenses + Total operating expenses Income from operations $2,180,000.00 $2,000,000.00 1,500,000.00 1,627.500.00 53,807,500.00 $3,500,000.00 $1,032,500.00 $1,060,000.00 9 Other income 99,500.00 20,000.00 10 $1,132,000.00 $1,080,000.00 11 Other expense (interest) 155000.00 120.000.00 NAR LO0.000.00 Previous --- Tu pruritability Instructions Questions Instructions Gross profit Selling expenses 6 Administrative expenses $4,840,000.00 $2,180,000.00 1,627,500.00 $4,560,000.00 $2,000,000.00 1,500,000.00 $5,500,000.00 $1,060,000.00 7 Total operating expenses # Income from operations $3,807,500.00 4 Other income 20,000.00 10 $1,032,500.00 99,500.00 $1,132,000.00 133,000.00 $999,000.00 11 Other expense (interest) 12 Income before income tax $1,080,000.00 120,000.00 5960,000.00 400,000.00 410,000.00 13 Income tax expense 14 Net income $589,000.00 $560,000.00 Measures of liquidity, solvency, and profitability Instructions Questions Instructions Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 2041 1 2012 2011 2 Assets 3 Current assets: 4 Cash 5 $950,000.00 420,000.00 6 Marketable securities Accounts receivable (net) Inventories Prepaid expenses 7 500,000.00 380,000.00 $1,050,000.00 301,000.00 584,000.00 410,000.00 109,000.00 $2,454,000.00 800,000.00 5,750,000.00 8 9 Total current assets 20,000.00 $2,270,000.00 800,000.00 10 Long-term investments 11 Property, plant, and equipment (net) 5,184,000.00 12 Total assets $9,004,000.00 58,254,000.00 Measures of liquidity, solvency, and profitability Instructions Questions Instructions 12 Total assets $9,004,000,00 13 $8,254,000.00 Liabilities 5863,000.00 5792.000.00 14 Current liabilities 15 Long-term liabilities: 1 Mortgage note payable, 6% Bonds payable 4% Total long-term liabilities 50.00 $200,000.00 3,000,000.00 $3,200,000.00 $4,065,000.00 3,000,000.00 $5,000,000.00 $5.792.000.00 19 Total liabilities 20 Stockholders' Equity 21 Preferred 4% stock 55 par $250,000.00 $250,000.00 500,000.00 500,000.00 22 Common stock, 55 par 23 Retained earnings 24 Total stockholders equity 25 Total liabilities and stockholders' equity 4,191,000.00 54,941.000.00 3712,000.00 54,462,000.00 $9,004,000.00 58.254,000.00 Previous Instructions Questions Instructions Determine the following measures for 20Y2 (round to one decimal place, including percentages, except for per share amounts): Assume a 365-day your 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. Assaturnover 12. Return on total assets 13. Return on stockholders esity Instructions Questions Instructions 1: 4. Accounts receivable turnover 5. Number of days sales in receivables 6. Inventory tumover 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 eamed 11. Asset turnover 12. Return on total assets 13. Return on stockholders equity 14. Return on common stockholders equity 15. Earnings ner share on common stock 16. Price earnings ratio 17. Dividends per share of common stock 18. Dividend yield Measures of liquidity, solvency, and profitability Instructions Questions Questions 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 % % % Measures of liquidity, solvency, and profitability Instructions Questions Questions 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 % % $ $ %