Measures of liquidity, Solvency and Profitability The comparative financial statements of Marshall Inc, are as follows. The market price of Marshall Inc. common stock was $ 53 on December 31, 20Y2 Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 2012 and 2041 2012 2011 Retained earnings, January 1 $ 1,569,600 $ 1,336,000 Net income 340,800 273,600 Total $ 1,910,400 $ 1,609,600 Dividends On preferred stock $ 11,200 $11,200 On common stock 28,800 28,800 $ 40,000 Total dividends $ 40,000 $ 1870,400 Retained earnings, December 31 $ 1,569,600 2011 $ 2,043,690 705,180 $ 1,338,510 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 2012 and 2041 2012 Sales $ 2,218,105 Cost of goods sold 766,500 Gross profit $ 1,451,605 Selling expenses $ 515,420 Administrative expenses 439,055 Total operating expenses 954,475 Income from operations $ 497,130 Other income 26,170 $ 523,300 Other expense (interest) 136,000 Income before income tax $ 387,300 Income tax expense 46,500 $ 614,550 360,930 975,480 $363,030 23,170 $ 386,200 75,200 $ 311,000 37,400 Net income $ 340,800 $ 273,600 Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 2041 Dec. 31, 20Y2 Dec. 31, 2011 Assets Current assets Cash $ 475,740 $ 311,220 Marketable securities 720,040 515,740 Accounts receivable (net) 386,900 Inventories 365,000 219,000 292,000 Prepaid expenses 90,008 62,240 Total current assets $ 1,964,688 $ 1,473,200 Long-term investments 841,072 283,978 Property, plant, and equipment (net) 2,040,000 1,836,000 Total assets $ 4,845,760 $ 3,593,178 Liabilities Current liabilities $ 595,360 $ 403,578 Long-term liabilities Mortgage note payable, 8 % $ 760,000 $ 0 $0 Current liabilities $ 595,360 $ 403,578 Long-term liabilities Mortgage note payable, 8 % $ 760,000 Bonds payable, 8 % 940,000 940,000 Total long-term liabilities $1,700,000 $ 940,000 Total liabilities $ 2,295,360 $ 1,343,578 Stockholders' Equity Preferred $ 0.70 stock, $ 20 par $ 320,000 $ 320,000 Common stock, $ 10 par 360,000 360,000 Retained earnings 1,870,400 1,569,600 Total stockholders' equity $ 2,550,400 $ 2,249,600 Total liabilities and stockholders' equity $4,845,760 $ 3,593,178 Required: Determine the following measures for 20Y2, rounding to one decimal place, except for dollar amounts, which should be rounded to the cent. Use the rounded answer of the requirement for subsequent requirement, if required. Assume 365 days a year. 1. Wondng capital 2. Current ratio 3. Quick ratio 4. Accounts recevable tumover eBook 22 WPC 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover days 5. Number of days' sales in receivables 6. Inventory turnover 7. Number of days' sales In Inventory Ratio of fixed assets to long-term liabilities 9. Ratio of liabilities to stockholders' equity 10. Times interest eamed days 8. 11. Asset tumover 12 Return on total assets % % % 13. Return on stockholders equity 14. Retum on common stockholders equity 15. Earnings per share on common stock 16. Price-eamings ratio 17. Dividends per share of common stock 18. Dividend yield %
