Measures of liquidity, solvency, and profitability Instructions Questions Instructions The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $82.80 on December 31, 2012 Marshall Inc Comparative Retained Earning Statement For the Year Ended De mber 31, 20Y2 and 2041 2012 2011 1 Reclined comings, Lanuary $5.692.000.00 $39.2.000.00 Net income 610.000.00 $10,000.00 54,302.000 102.000.00 Orvident On pred $100,00 $10,000.00 10.000.00 On common stock Tot dividende 31000.00 $110.000.00 tiedeming December 11 4.192.000 leasures of liquidity, solvency, and profitability Questions Instructions Marshall Ine. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 2012 2011 2 Sales $10.860.000.00 $10.000.000.00 Cost of goods sold 6.000.000.00 5.460.000.00 $4,860,000.00 54.540,000.00 Gross profit Selling expenses 6 Administrative expenses $2.160.000.00 $2.000.000.00 1.627,500.00 1,500,000.00 7 Total operating expenses 53.787.500.00 $5.500.000,00 Income from operations $1.077.500.00 $1.040,000.00 Other Terenue 99,500.00 20.000.00 10 $1.060.000.00 11 Other expense (interest) 120.000.00 12 Income before income tax 51.172.000.00 132.000.00 51.040,000.00 450,000.00 5610.000.00 5940,000.00 11Income tax expense Net incor 5540.000 Instructions Marshall Inc Comparative Balance Sheet December 31, 2012 and 20Y1 2092 20Y1 Assets Current assets: Cash $1.050,000.00 $950.000.00 Marketable securities 301.000.00 420.000.00 6 Accounts receivable (net) 500.000.00 584.000.00 430.000.00 Inventories 380.000.00 Prepaid expenses 109,000.00 20.000.00 Total current assets $2.474,000.00 52.270.000,00 800,000.00 800,000.00 10 Long-term investments 11 Property plant and equipment (net) 5,750,000.00 5.184,000.00 1 Total assets $9,074.000.00 58.254,000.00 Llabilities 14 Current liabilities $382.000.00 $812,000.00 11 long term Libilities: 1 Mortgage note payable, 6% 5200.000,00 50.00 SODO.000.00 3.000.000.00 Bonds payable SULUI 17 Bonds payable 4% 3.000.000.00 5.000.000.00 Total long-term liabilities $3.200.000.00 53.000,000.00 15 Total liabilities 54.083,000.00 53.817,000.00 Stockholders Equity 11 Preferred 4 stock. 55 par $250.000,00 $750,000.00 22 Common stock 55 par 900.000.00 500.000,00 31 Retained earnings 4.192.000.00 3.492.000.00 54.442.000.00 3* Total stockholders equity $4.942.000.00 25 Total liabilities and stod holders equity $9.024,000.00 $9.254,000.00 Determine the following measures for 2012 (round to no decimal pluce, including porcentages, except for per share amounta) Assure a 365day year 1 Working 2 Cuttentato 3. Duck tatio 4 account ceva nove 5. tlumber day 0 Inventory burnost Tumber of intentory Hati otto 100 ferm.lilla Fatos a stockhodenault Determine the following measures for 2012 (round to one decimal prece, including percentages, except for per share amounts). Assume a 365 day year. 1. Working Capital 1,592,000 2 Current ratio 2.8 3. Quick ratio 200 180 4. Accounts receivable turnover 5 Number of days' sales in receivables 6. Inventory turnover 7 Number of days sales in inventory 3. Ratio of fixed assets to long-term liabiben 14.8 25.0 9. Ratio of bishes to stockholders equity 10 Times interest earned 80 11 Asset turnover 12 12. Return on total assets 6.7 12.3. 12.11 6.00 5 13 Return on stockholders eqully 14. Return on common stockholders equly 15 Earnings per share on common stock 16. Price-camnings ratio 17 Dividends por share of common stock 18. Dividend yield 138 100 1.2%
