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Measures of liquidity, Solvency, and Profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $
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Measures of liquidity, Solvency, and Profitability
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 63 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 $914,800 $773,200 Net income 207,200 158,400 Total $1,122,000 $931,600 Dividends: On preferred stock $6,300 $6,300 On common stock 10,500 10,500 Total dividends $16,800 $16,800 Retained earnings, December 31 $1,105,200 $914,800
Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales $1,421,310 $1,309,480 Cost of goods sold 520,490 478,850 Gross profit $900,820 $830,630 Selling expenses $316,390 $385,430 Administrative expenses 269,510 226,370 Total operating expenses $585,900 $611,800 Income from operations $314,920 $218,830 Other revenue 16,580 13,970 $331,500 $232,800 Other expense (interest) 96,000 52,800 Income before income tax $235,500 $180,000 Income tax expense 28,300 21,600 Net income $207,200 $158,400
Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 20Y2 20Y1 Assets Current assets Cash $364,490 $207,640 Marketable securities 551,660 344,080 Accounts receivable (net) 248,200 233,600 Inventories 189,800 146,000 Prepaid expenses 68,954 41,530 Total current assets $1,423,104 $972,850 Long-term investments 396,816 211,957 Property, plant, and equipment (net) 1,320,000 1,188,000 Total assets $3,139,920 $2,372,807 Liabilities Current liabilities $444,720 $408,007 Long-term liabilities: Mortgage note payable, 8% $540,000 $0 Bonds payable, 8% 660,000 660,000 Total long-term liabilities $1,200,000 $660,000 Total liabilities $1,644,720 $1,068,007 Stockholders' Equity Preferred $0.70 stock, $20 par $180,000 $180,000 Common stock, $10 par 210,000 210,000 Retained earnings 1,105,200 914,800 Total stockholders' equity $1,495,200 $1,304,800 Total liabilities and stockholders' equity $3,139,920 $2,372,807
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 %
Measures of liquidity, Solvency, and Profitability
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 63 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 | $914,800 | $773,200 | ||||
Net income | 207,200 | 158,400 | ||||
Total | $1,122,000 | $931,600 | ||||
Dividends: | ||||||
On preferred stock | $6,300 | $6,300 | ||||
On common stock | 10,500 | 10,500 | ||||
Total dividends | $16,800 | $16,800 | ||||
Retained earnings, December 31 | $1,105,200 | $914,800 |
Marshall Inc. | ||||
Comparative Income Statement | ||||
For the Years Ended December 31, 20Y2 and 20Y1 | ||||
20Y2 | 20Y1 | |||
Sales | $1,421,310 | $1,309,480 | ||
Cost of goods sold | 520,490 | 478,850 | ||
Gross profit | $900,820 | $830,630 | ||
Selling expenses | $316,390 | $385,430 | ||
Administrative expenses | 269,510 | 226,370 | ||
Total operating expenses | $585,900 | $611,800 | ||
Income from operations | $314,920 | $218,830 | ||
Other revenue | 16,580 | 13,970 | ||
$331,500 | $232,800 | |||
Other expense (interest) | 96,000 | 52,800 | ||
Income before income tax | $235,500 | $180,000 | ||
Income tax expense | 28,300 | 21,600 | ||
Net income | $207,200 | $158,400 |
Marshall Inc. | |||||||
Comparative Balance Sheet | |||||||
December 31, 20Y2 and 20Y1 | |||||||
20Y2 | 20Y1 | ||||||
Assets | |||||||
Current assets | |||||||
Cash | $364,490 | $207,640 | |||||
Marketable securities | 551,660 | 344,080 | |||||
Accounts receivable (net) | 248,200 | 233,600 | |||||
Inventories | 189,800 | 146,000 | |||||
Prepaid expenses | 68,954 | 41,530 | |||||
Total current assets | $1,423,104 | $972,850 | |||||
Long-term investments | 396,816 | 211,957 | |||||
Property, plant, and equipment (net) | 1,320,000 | 1,188,000 | |||||
Total assets | $3,139,920 | $2,372,807 | |||||
Liabilities | |||||||
Current liabilities | $444,720 | $408,007 | |||||
Long-term liabilities: | |||||||
Mortgage note payable, 8% | $540,000 | $0 | |||||
Bonds payable, 8% | 660,000 | 660,000 | |||||
Total long-term liabilities | $1,200,000 | $660,000 | |||||
Total liabilities | $1,644,720 | $1,068,007 | |||||
Stockholders' Equity | |||||||
Preferred $0.70 stock, $20 par | $180,000 | $180,000 | |||||
Common stock, $10 par | 210,000 | 210,000 | |||||
Retained earnings | 1,105,200 | 914,800 | |||||
Total stockholders' equity | $1,495,200 | $1,304,800 | |||||
Total liabilities and stockholders' equity | $3,139,920 | $2,372,807 |
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 | % |
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