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\mathrm{.}70$ on December $31,20$Y$2.$

Stargel Inc.

Comparative Retained Earnings Statement

For the Years Ended December $31,20$Y$2$ and $20$Y$1$

Line Item Description $20$Y$220$Y$1$

Retained earnings, January $1$ $$5,375,000$ $$4,545,000$

Net income $$900,000$ $$925,000$

Dividends:

On preferred stock $(45,000)(45,000)$

On common stock $(50,000)(50,000)$

Increase in retained earnings $$805,000$ $$830,000$

Retained earnings, December $31$ $$6,180,000$ $$5,375,000$

Stargel Inc.

Comparative Income Statement

For the Years Ended December $31,20$Y$2$ and $20$Y$1$

Line Item Description $20$Y$220$Y$1$

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$

Selling expenses $$(2,000,000)$ $$(1,880,000)$

Administrative expenses $(1,500,000)(1,410,000)$

Total operating expenses $$(3,500,000)$ $$(3,290,000)$

Operating income $$1,150,000$ $$1,160,000$

Other revenue and expense:

Other revenue $150,000140,000$

Other expense $($interest$)(170,000)(150,000)$

Income before income tax expense $$1,130,000$ $$1,150,000$

Income tax expense $(230,000)(225,000)$

Net income $$900,000$ $$925,000$

Stargel Inc.

Comparative Balance Sheet

December $31,20$Y$2$ and $20$Y$1$

Line Item Description $20$Y$220$Y$1$

Assets

Current assets:

Cash $$500,000$ $$400,000$

Marketable securities $1,010,0001,000,000$

Accounts receivable $($net$)740,000510,000$

Inventories $1,190,000950,000$

Prepaid expenses $250,000229,000$

Total current assets $$3,690,000$ $$3,089,000$

Long$-$term investments $2,350,0002,300,000$

Property, plant, and equipment $($net$)3,740,0003,366,000$

Total assets $$9,780,000$ $$8,755,000$

Liabilities

Current liabilities $$900,000$ $$880,000$

Long$-$term liabilities:

Mortgage note payable, $10\%$ $$200,000$ $$0$

Bonds payable, $10\%1,500,0001,500,000$

Total long$-$term liabilities $$1,700,000$ $$1,500,000$

Total liabilities $$2,600,000$ $$2,380,000$

Stockholders' Equity

Preferred $$0\mathrm{.}90$ stock, $$10$ par $$500,000$ $$500,000$

Common stock, $$5$ par $500,000500,000$

Retained earnings $6,180,0005,375,000$

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 $20$Y$2.$ 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.