Measures of liquidity, Solvency, and Profitability

The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ $70$ on December $31,20$Y$2.$

Marshall Inc.

Comparative Retained Earnings Statement

For the Years Ended December $31,20$Y$2$ and $20$Y$1$

$20$Y$220$Y$1$

Retained earnings, January $1$ $$2,213,225$ $$1,878,175$

Net income $503,200384,700$

Dividends:

On preferred stock $(6,300)(6,300)$

On common stock $(43,350)(43,350)$

Retained earnings, December $31$ $$2,666,775$ $$2,213,225$

Marshall Inc.

Comparative Income Statement

For the Years Ended December $31,20$Y$2$ and $20$Y$1$

$20$Y$220$Y$1$

Sales $$3,232,075$ $$2,977,900$

Cost of merchandise sold $1,244,6501,145,080$

Gross profit $$1,987,425$ $$1,832,820$

Selling expenses $$656,760$ $$817,710$

Administrative expenses $559,455480,250$

Total operating expenses $$1,216,215$ $$1,297,960$

Income from operations $$771,210$ $$534,860$

Other revenue and expense:

Other revenue $40,59034,140$

Other expense $($interest$)(240,000)(132,000)$

Income before income tax expense $$571,800$ $$437,000$

Income tax expense $68,60052,300$

Net income $$503,200$ $$384,700$

Marshall Inc.

Comparative Balance Sheet

December $31,20$Y$2$ and $20$Y$1$

$20$Y$220$Y$1$

Assets

Current assets:

Cash $$816,480$ $$456,180$

Marketable securities $1,235,750755,950$

Accounts receivable $($net$)605,900569,400$

Inventories $452,600350,400$

Prepaid expenses $154,46591,240$

Total current assets $$3,265,195$ $$2,223,170$

Long$-$term investments $1,051,033229,198$

Property, plant, and equipment $($net$)3,300,0002,970,000$

Total assets $$7,616,228$ $$5,422,368$

Liabilities

Current liabilities $$989,453$ $$599,143$

Long$-$term liabilities:

Mortgage note payable, $8\%$ $$1,350,000$ $$0$

Bonds payable, $8\%1,650,0001,650,000$

Total long$-$term liabilities $$3,000,000$ $$1,650,000$

Total liabilities $$3,989,453$ $$2,249,143$

Stockholders' Equity

Preferred $$0\mathrm{.}70$ stock, $$50$ par $$450,000$ $$450,000$

Common stock, $$10$ par $510,000510,000$

Retained earnings $2,666,7752,213,225$

Total stockholders' equity $$3,626,775$ $$3,173,225$

Total liabilities and stockholders' equity $$7,616,228$ $$5,422,368$

Required:

Determine the following measures for $20$Y$2,$ 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 $