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, 20Y2. Stargel Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 2012 and 20Y1 20Y2 20Y1 Retained earnings, January 1 $5,375,000 $4,545,000 925,000 Net income 900,000 Total $6,275,000 $5,470,000 Dividends: Preferred stock dividends $45,000 $45,000 Common stock dividends 50,000 50,000 Total dividends $95,000 $6,180,000 $95,000 $5,375,000 Retained earnings, December 31 Stargel Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 2041 2042 20Y1 Sales $10,000,000 $9,400,000 Cost of goods sold 5,350,000 4,950,000 Gross profit $4,650,000 $4,450,000 $2,000,000 $1,880,000 Selling expenses Administrative expenses 1,500,000 1,410,000 Total operating expenses $3,500,000 $3,290,000 Income from operations $1,150,000 $1,160,000 Other revenue 140,000 150,000 $1,300,000 $1,300,000 Other expense (interest) 170,000 150,000 Income before income tax $1,130,000 $1,150,000 Income tax expense 230,000 225,000 $925,000 Net income $900,000 Stargel Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 20Y2 20Y1 Assets Current assets: Cash $500,000 $400,000 Marketable securities 1,010,000 1,000,000 Accounts receivable (net) 740,000 510,000 Inventories 1,190,000 950,000 Prepaid expenses 250,000 229,000 Total current assets $3,690,000 $3,089,000 Long-term investments 2,300,000 2,350,000 3,740,000 Property, plant, and equipment (net) 3,366,000 Total assets $9,780,000 $8,755,000 Liabilities Current liabilities $900,000 $880,000 Long-term liabilities: $200,000 $0 Mortgage note payable, 10% Bonds payable, 10% Total long-term liabilities 1,500,000 1,500,000 $1,700,000 $1,500,000 Total liabilities $2,600,000 $2,380,000 Stockholders' Equity Preferred $0.90 stock, $10 par $500,000 $500,000 Common stock, $5 par 500,000 500,000 Retained earnings 6,180,000 5,375,000 Total stockholders' equity $7,180,000 $6,375,000 Total liabilities and stockholders' equity $9,780,000 $8,755,000 Required: Determine the following measures for 20Y2, rounding to one decimal place, except 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 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover 5. Number of days' sales in receivables days 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 %
