Measures of liquidity, Solvency, and Profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 67 on December 31, 20Y2. Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 2041 2012 2011 Retained earnings, January 1 $1,309,300 $1,115,400 296,000 228,500 Total $1,605,300 $1,343,900 Net income Dividends: On preferred stock On common stock $9,100 $9,100 25,500 Total dividends $34,600 25,500 $34,600 $1,309,300 Retained earnings, December 31 $1,570,700 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 2012 and 2041 2012 2011 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Income from operations Other revenue $1,644,325 613,200 $1,031,125 $322,670 274,875 $597,545 $433,580 22,820 $456,400 120,000 $1,514,960 564,140 $950,820 $405,720 238,280 $644,000 $306,820 19,580 $326,400 66,400 $260,000 31,500 $228,500 Other expense (interest) Income before income tax Income tax expense $336,400 40,400 $296,000 Net income Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 2041 20Y2 2011 Assets Current assets Cash $283,800 429,530 Marketable securities Accounts receivable (net) Inventories 321,200 Prepaid expenses Total current assets Long-term investments Property, plant, and equipment (net) 248,200 53,686 $1,336,416 1,061,914 1,650,000 $295,180 489,150 299,300 189,800 59,040 $1,332,470 432,446 1,485,000 $3,249,916 Total assets $4,048,330 Liabilities Current liabilities $417,630 $550,616 Long-term liabilities: Mortgage note payable, 8% Bonds payable, 8% $0 $670,000 830,000 830,000 Bonds payable, 8% 830,000 830,000 Total long-term liabilities $1,500,000 $830,000 Total liabilities $1,917,630 $1,380,616 Stockholders' Equity Preferred $0.70 stock, $20 par $260,000 $260,000 Common stock, $10 par 300,000 300,000 Retained earnings 1,570,700 1,309,300 Total stockholders' equity $2,130,700 $1,869,300 Total liabilities and stockholders' equity $4,048,330 $3,249,916 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. Quick ratio 4. Accounts receivable turnover days 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 days 1. Working capital 2. Current ratio days 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 days
