Measures of liquidity, Solvency, and Profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 56 on December 31, 2012. Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 Retained earnings, January 1 Net income Total Dividends: On preferred stock On common stock Total dividends Retained earnings, December 31 2012 2011 $1,313,300 $1,118,800 288,000 229,100 $1,601,300 $1,347,900 $9,100 $9,100 25,500 25,500 $34,600 $1,566,700 $34,600 $1,313,300 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 2012 20Y1 Sales Cost of goods sold Gross profit Marshall Inc. Comparative Income Statement For the Years Ended December 31, 2012 and 2011 2011 $1,557,620 2012 $1,685,205 592,760 545,340 $1,092,445 $1,007,280 Selling expenses $368,670 $446,510 Administrative expenses 314,045 262,230 Total operating expenses $682,715 $708,740 Income from operations $409,730 $298,540 Other revenue 21,570 19,060 Other expense (interest) Income before income tax Income tax expense Net income Marshall Inc. $431,300 104,000 $327,300 39,300 $288,000 $317,600 57,600 $260,000 30,900 $229,100 Current assets Cash Marketable securities Accounts receivable (net) Inventories. Prepaid expenses < Total current assets Long-term investments Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 Assets 2012 2011 $290,190 $303,260 439,200 502,540 306,600 284,7001 233,600 175,200 54,898 60,650 $1,324,488 $1,326,350 1,073,572 621,653 1,430,000 1,287,000 $3,828,060 $3,235,003 Liabilities $401,360 $641,703 Property, plant, and equipment (net) Total assets Current liabilities Long-term liabilities: Mortgage note payable, 8% 1 Bonds payable, 8% $580,000 50 720,000 720,000 Current liabilities Liabilities $401,360 $641,703 Long-term liabilities: Mortgage note payable, 8% $580,000 50 Bonds payable, 8% 720,000 720,000 Total long-term liabilities $1,300,000 $720,000 Total liabilities $1,701,360 $1,361,703 Stockholders' Equity Preferred $0.70 stock, $20 par $260,000 $260,000 Common stock, $10 par 300,000 300,000 Retained earnings 1,566,700 1,313,300 Total stockholders' equity Total liabilities and stockholders' equity $2,126,700 $3,828,060 $1,873,300 $3,235,003 Required: Determine the following measures for 2 2, 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 2. Current ratio 3. Quick ratio 911,940 X 3.3 V 2.6 3. Quick ratio 4. Accounts receivable turnover S. 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 turnover 12. Return on total assets 13. Return on stockholders' equity 14. Return on common stockholders' equity 15. Earnings per share on common ck 16. Price-earnings ratio 17. Dividends per share of common stock 18. Dividend yield Feedback Check My Work 2.6 4.6 X days days % %