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 $ 67 on December 31, 2012. Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 2012 and 2011 2012 2011 Retained earnings, January 1 $ 2,464,175 $ 2,077,125 425,400 Net Income 570,000 Total $ 3,034,175 $ 2,502,525 Dividends On preferred stock $7,000 $7,000 On common stock 31,350 31,350 Total dividends $ 38,350 $ 38,350 Retained earnings, December 31 $ 2,995,825 $ 2,464,175 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 2041 2012 2011 Sales $ 2,941,900 1,083,320 $ 1,858,580 $ 2,710,540 996,650 Cost of goods sold Gross profit $ 1,713,890 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 2012 and 20Y1 2012 $ 2,941,900 20Y1 Sales 1,083,320 Cost of goods sold Gross profit Selling expenses $ 1,858,580 $ 2,710,540 996,650 $ 1,713,890 $ 728,340 427,750 $ 568,770 484,500 Administrative expenses Total operating expenses Income from operations Other income 1,053,270 $ 805,310 42,390 1,156,090 $ 557,800 35,600 $ 593,400 110,400 $ 847,700 200,000 Other expense interest) Income before income tax $ 647,700 77,700 $570,000 $ 483,000 57,600 Income tax expense Net income $ 425,400 Assets Current assets Cash $ 485,160 $ 613,770 1,017,100 Marketable securities 734,300 Accounts receivable (net) 584,000 Inventories 438,000 91,786 Prepaid expenses Total current assets $ 2,333,246 547,500 335,800 122,750 $ 2,636,920 1,094,595 2,700,000 $ 6,431,515 1,985,239 3,000,000 Long-term investments Property, plant, and equipment (net) Total assets Liabilities $ 7,318,485 $ 752,660 $ 1,517,340 Current liabilities Long-term liabilities Mortgage note payable, 8 % Bonds payable, 8 % $ 1,120,000 1,380,000 $ 0 1,380,000 $ 1,380,000 $ 2,897,340 Total long-term liabilities $ 2,500,000 $3,252,660 Total liabilities Stockholders' Equity Preferred $ 0.70 stock, $ 50 par Common stock, $ 10 par Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 500,000 570,000 2,995,825 $ 4,065,825 $7,318,485 $ 500,000 570,000 2,464,175 $ 3,534,175 $ 6,431,515 Determine the following measures for 2012, 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. 1,580,586 1. Working capital 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover 0.2 days 5. Number of days' sales in receivables 6. Inventory turnover 0.4 days 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
