Measures of liquidity, Solvency, and Profitability The comparative financial statements of Stargel Inc are as follows. The market price of Stargel common stock was $119.70 on December 31, 2012. Stargel Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 2012 and 2011 2012 2011 Retained earnings, January 1 Net income $5,375,000 900,000 $6,275,000 $4,545,000 925,000 $5,470,000 Total $45,000 Dividends: Preferred stock dividends Common stock div 15 Total dividends $45,000 50,000 50,000 $95,000 $95,000 Retained eamings, December 31 $6,180,000 $5,375,000 Stargel Inc. Comparative Income Statement For the Years Ended December 31, 2012 and 2041 2012 2011 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Income from operations Other revenue $10,000,000 5,350,000 $4,650,000 $2,000,000 1,500,000 $3,500,000 $1,150,000 150,000 $1,300,000 170,000 $1,130,000 230,000 $9,400,000 4,950,000 $4,450,000 $1,880,000 1,410,000 $3,290,000 $1,160,000 140,000 $1,300,000 150,000 $1,150,000 Other expense (interest) Income before income tax Income tax expense Net income 225,000 $900,000 $925,000 Stargel Inc. Comparative Balance Sheet December 31, 2012 and 2041 2012 2011 $400,000 1,000,000 510,000 950,000 Assets Current assets: Cash Marketable securities Accounts receivable (net) Inventories Prepaid expenses Total current assets Long-term investments Property, plant, and equipment (net) Total assets Liabilities $500,000 1,010,000 740,000 1,190,000 250,000 $3,690,000 2,350,000 3,740,000 229,000 $3,089,000 2,300,000 3,366,000 $9,780,000 $8,755,000 Liabilities Current liabilities $900,000 $880,000 Long-term liabilities: $0 Mortgage note payable, 10% Bonds payable, 10% $200,000 1,500,000 1,500,000 Total long-term liabilities $1,700,000 $1,500,000 Total liabilities $2,600,000 $2,380,000 $500,000 Stockholders' Equity Preferred $0.90 stock, $10 par Common stock, $5 par Retained earnings $500,000 500,000 6,180,000 500,000 5,375,000 Total stockholders' equity $7,180,000 $6,375,000 $9,780,000 $8,755,000 Total liabilities and stockholders' equity Required: Determine the following measures for 20Y2, rounding to one decimal place, except dollar amounts which should be rounded to the nearest cont. Use the rounded answer of the requirement for subsequent requirement, if required. Assume 365 days a year. days days 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 tumover 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 vield % % %% DIE
