1. Measures of liquidity, Solvency, and Profitability

   The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 59 on December 31, 20Y2.

   Marshall Inc.
   Comparative Retained Earnings Statement
   For the Years Ended December 31, 20Y2 and 20Y1
   			20Y2		20Y1
   Retained earnings, January 1			$3,487,200		$2,938,900
   Net income			799,200		601,900
   Total			$4,286,400		$3,540,800
   Dividends:
   	On preferred stock		$12,600		$12,600
   	On common stock		41,000		41,000
   		Total dividends	$53,600		$53,600
   Retained earnings, December 31			$4,232,800		$3,487,200

   Marshall Inc.
   Comparative Income Statement
   For the Years Ended December 31, 20Y2 and 20Y1
   	20Y2		20Y1
   Sales	$5,179,350		$4,771,960
   Cost of goods sold	2,014,070		1,852,940
   Gross profit	$3,165,280		$2,919,020
   Selling expenses	$1,046,350		$1,308,840
   Administrative expenses	891,340		768,690
   Total operating expenses	$1,937,690		$2,077,530
   Income from operations	$1,227,590		$841,490
   Other revenue	64,610		53,710
   	$1,292,200		$895,200
   Other expense (interest)	384,000		211,200
   Income before income tax	$908,200		$684,000
   Income tax expense	109,000		82,100
   Net income	$799,200		$601,900

   Marshall Inc.
   Comparative Balance Sheet
   December 31, 20Y2 and 20Y1
   			20Y2		20Y1
   Assets
   Current assets
   	Cash		$1,205,960		$773,650
   	Marketable securities		1,825,240		1,282,050
   	Accounts receivable (net)		970,900		912,500
   	Inventories		730,000		569,400
   	Prepaid expenses		228,156		154,730
   		Total current assets	$4,960,256		$3,692,330
   Long-term investments			1,402,624		129,361
   Property, plant, and equipment (net)			5,760,000		5,184,000
   Total assets			$12,122,880		$9,005,691
   Liabilities
   Current liabilities			$1,550,080		$1,338,491
   Long-term liabilities:
   	Mortgage note payable, 8%		$2,160,000		$0
   	Bonds payable, 8%		2,640,000		2,640,000
   		Total long-term liabilities	$4,800,000		$2,640,000
   Total liabilities			$6,350,080		$3,978,491
   Stockholders' Equity
   Preferred $0.70 stock, $40 par			$720,000		$720,000
   Common stock, $10 par			820,000		820,000
   Retained earnings			4,232,800		3,487,200
   Total stockholders' equity			$5,772,800		$5,027,200
   Total liabilities and stockholders' equity			$12,122,880		$9,005,691

   Required:

   Determine the following measures for 20Y2, 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
   4. Accounts receivable turnover
   5. Number of days' sales in receivables		days
   6. Inventory turnover
   7. Number of days' sales in inventory		days
   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 stock	$
   16. Price-earnings ratio
   17. Dividends per share of common stock	$
   18. Dividend yield		%

   Feedback

   1. Subtract current liabilities from current assets.

   2. Divide current assets by current liabilities.

   3. Divide quick assets by current liabilities. Quick assets are cash, temporary investments, and receivables.

   4. Divide sales by average accounts receivable. Average Accounts receivable = (Beginning Net Accounts Receivable + Ending Net Accounts Receivable) 2.

   5. Divide average accounts receivable by average daily sales. Average Accounts receivable = (Beginning Net Accounts Receivable + Ending Net Accounts Receivable) 2. Average daily sales are sales divided by 365 days.

   6. Divide cost of goods sold by average inventory. Average Inventory = (Beginning Inventories + Ending Inventories) 2.

   7. Divide average inventory by average daily cost of goods sold. Average Inventory = (Beginning Inventories + Ending Inventories) 2. Average daily cost of goods sold is cost of goods sold divided by 365 days.

   8. Divide property, plant, and equipment (net) by long-term liabilities.

   9. Divide total liabilities by total stockholders' equity.

   10. Divide the sum of income before income tax plus interest expense by interest expense.

   11. Divide sales by average total assets. Average total assets = (Beginning total assets + Ending total assets) 2.

   12. Divide the sum of net income plus interest expense by average total assets. Average total assets = (Beginning total assets + Ending total assets) 2.

   13. Divide net income by average total stockholders' equity. Average total stockholders' equity = (Beginning total stockholders' equity + Ending total stockholders' equity) 2.

   14. Divide net income minus preferred dividends from the retained earnings statement by average common stockholders' equity. Common stockholders' equity = Common stock + Retained earnings. Average common stockholders' equity = (Beginning common stockholders' equity + Ending common stockholders' equity) 2.

   15. Divide net income minus preferred dividends from the retained earnings statement by common shares outstanding (common stock par value).

   16. Divide common market share price by common earnings per share (use answer from requirement 15).

   17. Divide common dividends (from Retained Earnings Statement) by common shares outstanding (common stock par value).

   18. Divide common dividends per share (use answer from requirement 17) by market share price.