Measures of liquidity, Solvency and Profitability The comparative financial statements of Marshal Inc. are as follows. The market price of Marshall Inc. common stock was $ 63 on December 31, 2012, Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 2041 2012 2011 Retained earnings, January 1 $1,646,825 $ 1,390,775 Net Income 395,200 284,900 Total $ 2,042,025 $1,675,675 Dividends On preferred stock $ 6,300 $ 6,300 On common stock 22,550 22,550 Total dividends $ 28,850 $ 28,850 Retained earnings, December 31 $ 2,013,175 $ 1,646,825 Marshall Inc. 2011 Comparative Income Statement For the Years Ended December 31, 20Y2 and 2041 2012 Sales $ 2,398,780 Cost of goods sold 950,460 Gross profit $ 1,448,320 Selling expenses $ 457,320 Administrative expenses 389,560 Total operating expenses 846,880 Income from operations $ 601,440 Other income 31,660 $ 633,100 Other expense interest) 184,000 Income before income tax $ 449,100 Income tax expense 53,900 Net Income $ 395,200 $ 2,210,110 874,420 $ 1,335,690 $589,450 346,180 935,630 $ 400,060 25,540 $ 425,600 101,600 $ 324,000 39,100 $ 284,900 Marshall Inc Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 2041 Dec. 31, 2012 Assets Dec 31, 2011 Current assets Cash Marketable securities Accounts receivable (net) Inventories Prepaid expenses Total current assets Long-term investments Property, plant, and equipment (net) $ 627,270 949,380 467,200 350,400 $ 427,200 707,920 438,000 262,800 118,677 85,440 $ 1,921,360 73,881 $ 2,512,927 341,741 2,990,000 $ 5,844,668 Total assets 2,691,000 $ 4,686,241 Liabilities Current liabilities $ 761,493 $ 999,416 Long-term liabilities Mortgage note payable, 8 % $1,030,000 $0 Bonds payable, 8 % 1,270,000 1,270,000 Total long-term liabilities $ 2,300,000 $ 1,270,000 Total liabilities $ 3,061,493 $ 2,269,416 Stockholders' Equity Preferred $ 0.70 stock, $ 40 par Common stock, $ 10 par $360,000 410,000 $360,000 410,000 1,646,825 Retained earnings 2,013, 175 Total stockholders' equity $ 2,783,175 $ 2,416,825 $ 5,844,668 Total liabilities and stockholders' equity $ 4,686,241
