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Measures of liquidity, Solvency , and Profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was
Measures of liquidity, Solvency, and Profitability
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 56 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 $4,246,325 $3,599,075 Net income 937,200 737,100 Dividends: On preferred stock (12,600) (12,600) On common stock (77,250) (77,250) Retained earnings, December 31 $5,093,675 $4,246,325
Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales $5,887,815 $5,424,760 Cost of merchandise sold 2,124,300 1,954,360 Gross profit $3,763,515 $3,470,400 Selling expenses $1,288,960 $1,565,010 Administrative expenses 1,098,005 919,140 Total operating expenses $2,386,965 $2,484,150 Income from operations $1,376,550 $986,250 Other revenue and expense: Other revenue 72,450 62,950 Other expense (interest) (384,000) (211,200) Income before income tax expense $1,065,000 $838,000 Income tax expense 127,800 100,900 Net income $937,200 $737,100
Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 20Y2 20Y1 Assets Current assets: Cash $940,910 $905,920 Marketable securities 1,424,080 1,501,230 Accounts receivable (net) 1,065,800 1,000,100 Inventories 803,000 613,200 Prepaid expenses 178,003 181,180 Total current assets $4,411,793 $4,201,630 Long-term investments 3,173,190 862,244 Property, plant, and equipment (net) 5,760,000 5,184,000 Total assets $13,344,983 $10,247,874 Liabilities Current liabilities $1,521,308 $1,431,549 Long-term liabilities: Mortgage note payable, 8% $2,160,000 $0 Bonds payable, 8% 2,640,000 2,640,000 Total long-term liabilities $4,800,000 $2,640,000 Total liabilities $6,321,308 $4,071,549 Stockholders' Equity Preferred $0.70 stock, $50 par $900,000 $900,000 Common stock, $10 par 1,030,000 1,030,000 Retained earnings 5,093,675 4,246,325 Total stockholders' equity $7,023,675 $6,176,325 Total liabilities and stockholders' equity $13,344,983 $10,247,874
Required:
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.
1. Working capital $fill in the blank 1 2. Current ratio fill in the blank 2 3. Quick ratio fill in the blank 3 4. Accounts receivable turnover fill in the blank 4 5. Number of days' sales in receivables fill in the blank 5 days 6. Inventory turnover fill in the blank 6 7. Number of days' sales in inventory fill in the blank 7 days 8. Ratio of fixed assets to long-term liabilities fill in the blank 8 9. Ratio of liabilities to stockholders' equity fill in the blank 9 10. Times interest earned fill in the blank 10 11. Asset turnover fill in the blank 11 12. Return on total assets fill in the blank 12 % 13. Return on stockholders equity fill in the blank 13 % 14. Return on common stockholders equity fill in the blank 14 % 15. Earnings per share on common stock $fill in the blank 15 16. Price-earnings ratio fill in the blank 16 17. Dividends per share of common stock $fill in the blank 17 18. Dividend yield fill in the blank 18 %
Measures of liquidity, Solvency, and Profitability
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 56 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 | $4,246,325 | $3,599,075 | ||||
Net income | 937,200 | 737,100 | ||||
Dividends: | ||||||
On preferred stock | (12,600) | (12,600) | ||||
On common stock | (77,250) | (77,250) | ||||
Retained earnings, December 31 | $5,093,675 | $4,246,325 |
Marshall Inc. | ||||
Comparative Income Statement | ||||
For the Years Ended December 31, 20Y2 and 20Y1 | ||||
20Y2 | 20Y1 | |||
Sales | $5,887,815 | $5,424,760 | ||
Cost of merchandise sold | 2,124,300 | 1,954,360 | ||
Gross profit | $3,763,515 | $3,470,400 | ||
Selling expenses | $1,288,960 | $1,565,010 | ||
Administrative expenses | 1,098,005 | 919,140 | ||
Total operating expenses | $2,386,965 | $2,484,150 | ||
Income from operations | $1,376,550 | $986,250 | ||
Other revenue and expense: | ||||
Other revenue | 72,450 | 62,950 | ||
Other expense (interest) | (384,000) | (211,200) | ||
Income before income tax expense | $1,065,000 | $838,000 | ||
Income tax expense | 127,800 | 100,900 | ||
Net income | $937,200 | $737,100 |
Marshall Inc. | |||||||
Comparative Balance Sheet | |||||||
December 31, 20Y2 and 20Y1 | |||||||
20Y2 | 20Y1 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash | $940,910 | $905,920 | |||||
Marketable securities | 1,424,080 | 1,501,230 | |||||
Accounts receivable (net) | 1,065,800 | 1,000,100 | |||||
Inventories | 803,000 | 613,200 | |||||
Prepaid expenses | 178,003 | 181,180 | |||||
Total current assets | $4,411,793 | $4,201,630 | |||||
Long-term investments | 3,173,190 | 862,244 | |||||
Property, plant, and equipment (net) | 5,760,000 | 5,184,000 | |||||
Total assets | $13,344,983 | $10,247,874 | |||||
Liabilities | |||||||
Current liabilities | $1,521,308 | $1,431,549 | |||||
Long-term liabilities: | |||||||
Mortgage note payable, 8% | $2,160,000 | $0 | |||||
Bonds payable, 8% | 2,640,000 | 2,640,000 | |||||
Total long-term liabilities | $4,800,000 | $2,640,000 | |||||
Total liabilities | $6,321,308 | $4,071,549 | |||||
Stockholders' Equity | |||||||
Preferred $0.70 stock, $50 par | $900,000 | $900,000 | |||||
Common stock, $10 par | 1,030,000 | 1,030,000 | |||||
Retained earnings | 5,093,675 | 4,246,325 | |||||
Total stockholders' equity | $7,023,675 | $6,176,325 | |||||
Total liabilities and stockholders' equity | $13,344,983 | $10,247,874 |
Required:
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.
1. Working capital | $fill in the blank 1 | |
2. Current ratio | fill in the blank 2 | |
3. Quick ratio | fill in the blank 3 | |
4. Accounts receivable turnover | fill in the blank 4 | |
5. Number of days' sales in receivables | fill in the blank 5 | days |
6. Inventory turnover | fill in the blank 6 | |
7. Number of days' sales in inventory | fill in the blank 7 | days |
8. Ratio of fixed assets to long-term liabilities | fill in the blank 8 | |
9. Ratio of liabilities to stockholders' equity | fill in the blank 9 | |
10. Times interest earned | fill in the blank 10 | |
11. Asset turnover | fill in the blank 11 | |
12. Return on total assets | fill in the blank 12 | % |
13. Return on stockholders equity | fill in the blank 13 | % |
14. Return on common stockholders equity | fill in the blank 14 | % |
15. Earnings per share on common stock | $fill in the blank 15 | |
16. Price-earnings ratio | fill in the blank 16 | |
17. Dividends per share of common stock | $fill in the blank 17 | |
18. Dividend yield | fill in the blank 18 | % |
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