Measures of liquidity, Solvency, and Profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 60 on December 31, 20Y2. Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 2041 20Y2 20Y1 Retained earnings, January 1 $2,556,450 $2,149,150 Net income 560,000 440,200 Total $3,116,450 $2,589,350 Dividends: On preferred stock $7,700 $7,700 On common stock 25,200 25,200 Total dividends $32,900 $32,900 Retained earnings, December 31 $3,083,550 $2,556,450 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 2012 2011 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 2012 and 20Y1 20Y2 20Y1 Sales $3,346,685 $3,083,430 1,185,520 1,090,680 Cost of goods sold Gross profit $2,161,165 $1,992,750 $721,540 $883,530 Selling expenses Administrative expenses 614,645 518,900 $1,336,185 $1,402,430 Total operating expenses Income from operations $824,980 $590,320 Other revenue 43,420 37,680 $628,000 $868,400 232,000 128,000 Other expense (interest) Income before income tax Income tax expense $636,400 $500,000 76,400 59,800 Net income $560,000 $440,200 Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 2012 20Y1 Assets Current assets Cash $621,630 $561,570 Marketable securities 940,850 930,610 Accounts receivable (net) 649,700 613,200 481,800 365,000 117,605 112,310 Inventories Prepaid expenses Total current assets Long-term investments Property, plant, and equipment (net) $2,811,585 $2,582,690 1,809,160 584,565 3,480,000 3,132,000 Total assets $8,100,745 $6,299,255 Liabilities Current liabilities $937,195 $962,805 Long-term liabilities: Mortgage note payable, 8% $1,300,000 $0 Bonds payable, 8% 1,600,000 1,600,000 Liabilities Current liabilities $937,195 $962,805 Long-term liabilities: $1,300,000 $0 Mortgage note payable, 8% Bonds payable, 8% Total long-term liabilities 1,600,000 1,600,000 $2,900,000 $1,600,000 $3,837,195 $2,562,805 Total liabilities Stockholders' Equity Preferred $0.70 stock, $50 par Common stock, $10 par $550,000 $550,000 630,000 630,000 3,083,550 2,556,450 Retained earnings Total stockholders' equity $4,263,550 $3,736,450 Total liabilities and stockholders' equity $8,100,745 $6,299,255 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 1,874,390 2. Current ratio 3 3. Quick ratio 2.4 4. Accounts receivable turnover 5.3 5. Number of days' sales in receivables 68.9 days 6. Inventory turnover 2.8 7. Number of days' sales in inventory 130.4 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 %
