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 $ 69 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 $ 1,410,800 $ 1,200,800

Net income 334,400 246,000

Total $ 1,673,200 $ 1,446,800

Dividends

On preferred stock $ 10,500 $ 10,500

On common stock 25,500 25,500

Total dividends $ 36,000 $ 36,000

Retained earnings, December 31 $ 1,709,200 $ 1,410,800

Marshall Inc.

Comparative Income Statement

For the Years Ended December 31, 20Y2 and 20Y1

20Y2 20Y1

Sales $ 2,222,850 $ 2,047,980

Cost of goods sold 740,950 681,670

Gross profit $ 1,481,900 $ 1,366,310

Selling expenses $ 523,210 $ 642,850

Administrative expenses 445,690 377,540

Total operating expenses 968,900 1,020,390

Income from operations $ 513,000 $ 345,920

Other income 27,000 22,080

$ 540,000 $ 368,000

Other expense (interest) 160,000 88,000

Income before income tax $ 380,000 $ 280,000

Income tax expense 45,600 34,000

Net income $ 334,400 $ 246,000

Marshall Inc.

Comparative Balance Sheet

December 31, 20Y2 and 20Y1

Dec. 31, 20Y2 Dec. 31, 20Y1

Assets

Current assets

Cash $ 416,090 $ 375,050

Marketable securities 629,760 621,510

Accounts receivable (net) 394,200 372,300

Inventories 292,000 219,000

Prepaid expenses 78,722 75,010

Total current assets $ 1,810,772 $ 1,662,870

Long-term investments 522,548 52,901

Property, plant, and equipment (net) 2,600,000 2,340,000

Total assets $ 4,933,320 $ 4,055,771

Liabilities

Current liabilities $ 584,120 $ 904,971

Long-term liabilities

Mortgage note payable, 8 % $ 900,000 $ 0

Bonds payable, 8 % 1,100,000 1,100,000

Total long-term liabilities $ 2,000,000 $ 1,100,000

Total liabilities $ 2,584,120 $ 2,004,971

Stockholders' Equity

Preferred $ 0.70 stock, $ 20 par $ 300,000 $ 300,000

Common stock, $ 10 par 340,000 340,000

Retained earnings 1,709,200 1,410,800

Total stockholders' equity $ 2,349,200 $ 2,050,800

Total liabilities and stockholders' equity $ 4,933,320 $ 4,055,771

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

%