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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

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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, 20Y2. Stargel Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 2011 $5,375,000 $900,000 $4,545,000 $925,000 Retained earnings, January 1 Net income Dividends: On preferred stock On common stock Increase in retained earnings Retained earnings, December 31 (45,000) (50,000) $805,000 $6,180,000 (45,000) (50,000) $830,000 $5,375,000 For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Operating income Other revenue and expense: $10,000,000 (5,350,000) $4,650,000 $(2,000,000) (1,500,000) $(3,500,000) $1,150,000 $9,400,000 (4,950,000) $4,450,000 $(1,880,000) (1,410,000) $(3,290,000) $1,160,000 Other revenue Other expense (interest) Income before income tax expense 150,000 (170,000) $1,130,000 (230,000) $900,000 140,000 (150,000) $1,150,000 (225,000) $925,000 Income tax expense Net income Stargel Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 20Y2 20Y1 Assets Current assets: Cash Marketable securities Accounts receivable (net) Inventories Prepaid expenses Total current assets $500,000 1,010,000 740,000 1,190,000 250,000 $3,690,000 2,350,000 3,740,000 $9,780,000 $400,000 1,000,000 510,000 950,000 229,000 $3,089,000 2,300,000 3,366,000 $8,755,000 Long-term investments Property, plant, and equipment (net) Total assets $900,000 $880,000 Liabilities Current liabilities Long-term liabilities: Mortgage note payable, 10% Bonds payable, 10% Total long-term liabilities Total liabilities Stockholders' Equity Preferred $0.90 stock, $10 par Common stock, $5 par Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $200,000 1,500,000 $1,700,000 $2,600,000 $0 1,500,000 $1,500,000 $2,380,000 $500,000 500,000 6,180,000 $500,000 500,000 5,375,000 $6,375,000 $7,180,000 $9,780,000 $8,755,000 Required: Determine the following measures for 20Y2, 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.

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