Measures of liquidity, Solvency, and Profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $82.60 on December 31, 20Y2. Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 2012 and 2041 2012 20Y1 Retained earnings, January 1 $3,704,000 $3,264,000 Net income 600,000 550,000 Dividends: On preferred stock On common stock (10,000) (100,000) 54,194,000 (10,000) (100,000) $3,704,000 Retained earnings, December 31 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 2012 and 2041 2012 20Y1 Sales $10,850,000 $10,000,000 Cost of merchandise sold 6,000,000 5,450,000 Gross profit $4,850,000 $4,550,000 Selling expenses $2,170,000 $2,000,000 Administrative expenses 1,627,500 1,500,000 Total operating expenses $3,797,500 $3,500,000 Income from operations $1,052,500 $1,050,000 Other revenue and expense: Other revenue 99,500 20,000 Other expense (interest) (132,000) (120,000) Income before income tax expense $1,020,000 $950,000 Income tax expense 420,000 400,000 Net income $600,000 $550,000 Marshall Inc. Comparative Balance Sheet December 31, 2012 and 2041 2012 2011 Assets Current assets: Cash $1,050,000 $ 950,000 Marketable securities 301,000 420,000 585,000 Accounts receivable (net) Inventories 500,000 380,000 420,000 Prepaid expenses 108,000 20,000 $2,270,000 Total current assets $2,464,000 800,000 800,000 5,760,000 5,184,000 Long-term investments Property, plant, and equipment (net) Total assets Liabilities Current liabilities $9,024,000 $8,254,000 5880,000 $800,000 200,000 Long-term liabilities: Mortgage note payable, 6% Bonds payable, 4% Total long-term liabilities 3,000,000 SO $3,000,000 $3,000,000 $3,200,000 Total liabilities $4,080,000 $3,800,000 Stockholders' Equity Preferred 4% stock, $5 par $250,000 $250,000 500,000 500,000 Common stock, 55 par Retained earnings Total stockholders' equity 4,194,000 3,704,000 $4,944,000 $4,454,000 $8,254,000 Total liabilities and stockholders' equity $9,024,000 Required: Determine the following measures for 2012, 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 1,584,000 2. Current ratio 2.8 2.2 20.0 18.3 days 15 3. Quick ratio 4. Accounts receivable turnover 5. 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 24.3 days 1.8 0.8 8.7 11. Asset turnover 1.3 12. Return on total assets 6.9 X % 13. Return on stockholders' equity 12.8 % 14. Return on common stockholders' equity 13.5 X % 15. Earnings per share on common stock S 5.9 14 16. Price-earnings ratio 17. Dividends per share of common stock S 1 18. Dividend yield 1.2 %