Question
Measures of liquidity, Solvency and Profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $
Measures of liquidity, Solvency and Profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 62 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 $ 1,707,275 $ 1,444,725 Net income 358,800 295,900 Total $2,066,075 $ 1,740,625 Dividends: On preferred stock $ 11,900 $ 11,900 On common stock 21,450 21,450 Total dividends $ 33,350 $ 33,350 Retained earnings, December 31 $ 2,032,725 $ 1,707,275 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales $ 2,474,700 $ 2,280,060 Cost of goods sold 825,630 759,580 Gross profit $ 1,649,070 $ 1,520,480 Selling expenses $ 603,370 $ 709,180 Administrative expenses 513,990 416,500 Total operating expenses 1,117,360 1,125,680 Income from operations $ 531,710 $ 394,800 Other revenue 27,990 25,200 $ 559,700 $ 420,000 Other expense (interest) 152,000 84,000 Income before income tax $ 407,700 $ 336,000 Income tax expense 48,900 40,100 Net income $ 358,800 $ 295,900 Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 Dec. 31, 20Y2 Dec. 31, 20Y1 Assets Current assets Cash $ 462,260 $ 316,690 Marketable securities 699,630 524,800 Accounts receivable (net) 423,400 401,500 Inventories 321,200 248,200 Prepaid expenses 87,450 63,340 Total current assets $ 1,993,940 $ 1,554,530 Long-term investments 785,238 14,000 Property, plant, and equipment (net) 2,470,000 2,223,000 Total assets $ 5,249,178 $ 3,791,530 Liabilities Current liabilities $ 586,453 $ 304,255 Long-term liabilities Mortgage note payable, 8 % $ 850,000 $ 0 Bonds payable, 8 % 1,050,000 1,050,000 Total long-term liabilities $ 1,900,000 $ 1,050,000 Total liabilities $ 2,486,453 $ 1,354,255 Stockholders' Equity Preferred $ 0.70 stock, $ 20 par $ 340,000 $ 340,000 Common stock, $ 10 par 390,000 390,000 Retained earnings 2,032,725 1,707,275 Total stockholders' equity $ 2,762,725 $ 2,437,275 Total liabilities and stockholders' equity $ 5,249,178 $ 3,791,530 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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