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, 2012 Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 2012 and 20Y1 2012 2011 Retained earnings, January 1 $ 1,336,000 $1,569,600 340,800 Net income 273,600 Total $ 1,910,400 5 1.609,600 Dividends On preferred stock $ 11,200 $ 11,200 On common stock 28,800 28,800 Total dividends $ 40,000 $ 40,000 $ 1,870,400 $ 1,569,600 Retained earnings, December 31 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 2012 and 20Y1 20Y2 20Y1 $ 2,043,690 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses $ 2,218,105 766,500 $ 1,451,605 705,180 $ 1,338,510 $ 515,420 $ 614,550 439,055 360,930 954,475 975,480 Total operating expenses Income from operations Other income $ 497,130 $ 363,030 23,170 26,170 $ 523,300 $ 386,200 Other expense (interest) 136,000 75,200 Income before income tax $ 387,300 $ 311,000 Income tax expense 46,500 37,400 Net income $ 340,800 $ 273,600 Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 2041 Dec 31, 2012 Assets Dec 31, 2011 $ 475,740 $ 311,220 515,740 720,040 Current assets Cash Marketable securities Accounts receivable (net) Inventories Prepaid expenses 386,900 365,000 292,000 219.000 90,008 62,240 Total current assets $ 1,964,688 $ 1,473,200 841,072 283,978 Long-term investments Property, plant, and equipment (net) 2,040,000 1,836,000 $ 3,593,178 Total assets $ 4,845,760 Liabilities Current liabilities $ 595,360 $ 403,578 Long-term liabilities Mortgage note payable, 8 % $760,000 0 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 54,845,760 $ 3,593,178 Required: Determine the following measures for 2012, 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 3.3 3. Quick ratio 5.9 4. Accounts receivable turnover 5. Number of days' sales in receivables days 6. Inventory turnover 3 7. Number of days' sales in inventory days 8. Ratio of fixed assets to long-term liabilities 1.2 9. Ratio of abilities to stockholders' equity 10. Times interest earned 11. Asset turnover 12. Retum on total assets % 13. Return on stockholders equity % 14. Retum on common stockholders equity % 15. Earnings per share on common stock $ 16. Price earnings ratio 17. Dividends per share of commot stock $ 18 Dividend yield %
