Measures of liquidity, Solvency and Profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall Inc. common stock was $ 58 on December 31, 2012. Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 2012 and 2041 2012 2011 Retained earnings, January 1 $779,250 175,200 $ 658,150 134,800 Net Income Total $954,450 $ 792,950 Dividends On preferred stock $ 5,600 $ 5,600 On common stock 8,100 8,100 $ 13,700 Total dividends $ 13,700 $ 940,750 Retained earnings, December 31 $ 779,250 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 2011 Sales $ 1,100,840 367,920 $ 1,014,220 338,490 Cost of goods sold UDUK Calculator Print Item Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 2011 2012 2011 Sales $ 1,100,840 367,920 $ 1,014,220 338,490 $ 675,730 $ 732,920 $ 256,710 $ 311,420 Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Income from operations 218,670 182,890 475,380 494,310 $ 257,540 13,560 $ 181,420 11,580 Other income $ 271,100 $ 193,000 40,000 Other expense (interest) 72,000 $ 199,100 $ 153,000 Income before income tax 23,900 18,200 Income tax expense $ 175,200 $ 134,800 Net income Marshall Inc. Comparative Balance Sheet Comparative Balance Sheet December 31, 20Y2 and 2041 Dec 31, 2012 Dec. 31, 2011 Assets Current assets Cash $191,020 316,540 $ 153,520 232,360 197,100 146,000 182,500 116,800 Marketable securities Accounts receivable (net) Inventories Prepaid expenses Total current assets Long-term investments Property, plant, and equipment (net) 29,045 38,200 $ 758,025 $ 845,060 505,400 163,060 1,053,000 1,170,000 $ 2,433,425 Total assets $ 2,061,120 Liabilities $ 252,675 $ 441,870 Current liabilities Long-term liabilities Mortgage note payable, 8 % Bonds payable, 8 % $ 400,000 $0 500,000 500,000 $ 900,000 $ 500,000 Total long-term liabilities $ 1,152,675 $ 941,870 Total liabilities Stockholders' Equity Preferred $ 0.70 stock, $ 20 par $ 160,000 $ 160,000 - Printer Calculator Stockholders' Equity Preferred $ 0.70 stock, $ 20 par $ 160,000 $ 160,000 Common stock, $ 10 par 180,000 180,000 Retained earnings 940,750 779,250 Total stockholders' equity $ 1,280,750 $ 1,119,250 Total liabilities and stockholders' equity $ 2,433,425 $2,061,120 Required: Determine the following measures for 2012, rounding to one decimal place, except for dollar amounts, which should be rounded to the nearest cenu requirement, if required. Assume 365 days a year. 1. Working capital 2. Current ratio $ 3. Quick ratio days 4. Accounts receivable turnover 5. Number of days' sales in receivables 6. Inventory turnover 7. Number of days' sales in inventory days 8. Ratio of fixed assets to long-term liabilities 9. Ratio of liabilities to stockholders' equity 10. Times interest earned 11. Asset turnover 96 12 Retum on total assets % 13. Return on stockholders' equity % Determine the following measures for 2012, rounding to one decimal place, except for dollar amounts, which should be rounde requirement, If required. Assume 365 days a year. 1. Working capital 2. Current ratio 3. Quick ratio (III 4. Accounts receivable turnover days 5. Number of days' sales in receivables 6. Inventory turnover 7. Number of days' sales in inventory days 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
