Measures of liquidity, Solvency, and Profitability The comparative financial statements of Stargel Inc. are as follows. The market price of Stargel common stock was $119.70 on December 31, 2012. Stargel Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 2012 and 2041 2012 2011 Retained earnings, January 1 $5,375,000 $4,545,000 Net income 900,000 925,000 Total $6,275,000 $5,470,000 Dividends: Preferred stock dividends $45,000 $45,000 Common stock dividends 50,000 50,000 Total dividends $95,000 $95,000 Retained earnings, December 31 $6,180,000 $5,375,000 Stargel Inc. Comparative Income Statement For the Years Ended December 31, 2012 and 2011 2012 2011 $9,400,000 4,950,000 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Income from operations $10,000,000 5,350,000 34,650,000 $2,000,000 1,500,000 $4,450,000 $1,880,000 1,410,000 $3,290,000 $1,160,000 33,500,000 $1,150,000 $3,500,000 Total operating expenses Income from operations $1,150,000 $3,290,000 $1,160,000 140,000 Other revenue 150,000 $1,300,000 $1,300,000 150,000 170,000 Other expense (interest) Income before income tax $1,150,000 Income tax expense $1,130,000 230,000 $900,000 225,000 Net income $925,000 Stargel Inc. Comparative Balance Sheet December 31, 2012 and 2041 20Y2 2011 Assets Current assets: Cash Marketable securities Accounts receivable (net) Inventories Prepaid expenses $500,000 1,010,000 740,000 $400,000 1,000,000 510,000 1,190,000 950,000 250,000 229,000 Total current assets $3,690,000 $3,089,000 Long-term investments 2.350,000 2,300,000 Property, plant, and equipment (net) 3,740,000 3,366,000 Total assets $9,780,000 $8,755,000 Liabilities Current liabilities $900,000 $880,000 Long-term liabilities: eBook Printer Inventories 1,190,000 950,000 Prepaid expenses 250,000 229,000 Total current assets $3,690,000 $3,089,000 Long-term investments 2,350,000 2,300,000 Property, plant, and equipment (net) 3,740,000 3,366,000 Total assets $9,780,000 $8,755,000 Liabilities Current liabilities $900,000 $880,000 Long-term liabilities: Mortgage note payable, 10% $200,000 $0 Bonds payable, 10% 1,500,000 1,500,000 Total long-term liabilities $1,700,000 $1,500,000 Total liabilities $2,600,000 $2,380,000 Stockholders' Equity Preferred $0.90 stock. $10 par $500,000 $500,000 Common stock, $5 par 500,000 500,000 Retained earnings 6,180,000 5,375,000 Total stockholders' equity $7,180,000 $6,375,000 Total liabilities and stockholders' equity $9,780,000 $8,755,000 Required: Determine the following measures for 2012, rounding to one decimal place, except 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 2,790,000 2. Current ratio 4.1 2.5 3. Quick ratio 4. Accounts recevable turnover 16 5. Number of days' sales in receivables X days Total liabilities and stockholders' equity $9.780,000 $8,755,000 Required: Determine the following measures for 2042, rounding to one decimal place, except 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 2,790,000 2. Current ratio 4.1 3. Quick ratio 2.5 161 X days 5 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 73 days 1.76 X 0.36X 7.7 X 11. Asset turnover 12. Return on total assets 13. Return on stockholders' equity 14. Return on common stockholders' equity 20.0 X 107.9 X % ** 9.7 X % 13.6 % 15. Earnings per share on common stock 8.55 16. Price-earnings ratio 14 17. Dividends per share of common stock 0.50 18. Dividend yield 0.4 %