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 $31,20$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 $1$ $$4,737,650$  $$3,986,450$ 

Net income $1,110,000816,500$ 

Dividends:

On preferred stock $(14,000)(14,000)$ 

On common stock $(51,300)(51,300)$ 

Retained earnings, December $31$ $$5,782,350$  $$4,737,650$ 

Marshall Inc.

Comparative Income Statement

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

 $20$Y$220$Y$1$

Sales $$7,730,700$  $$7,122,680$ 

Cost of merchandise sold $2,715,6002,498,350$ 

Gross profit $$5,015,100$  $$4,624,330$ 

Selling expenses $$1,790,190$  $$2,191,790$ 

Administrative expenses $1,524,9801,287,240$ 

Total operating expenses $$3,315,170$  $$3,479,030$ 

Income from operations $$1,699,930$  $$1,145,300$ 

Other revenue and expense:

Other revenue $89,47073,100$ 

Other expense $($interest$)(528,000)(290,400)$ 

Income before income tax expense $$1,261,400$  $$928,000$ 

Income tax expense $151,400111,500$ 

Net income $$1,110,000$  $$816,500$ 

Marshall Inc.

Comparative Balance Sheet

December $31,20$Y$2$ and $20$Y$1$

 $20$Y$220$Y$1$

Assets

Current assets:

Cash $$1,410,030$  $$1,033,710$ 

Marketable securities $2,134,1001,713,010$ 

Accounts receivable $($net$)1,328,6001,248,300$ 

Inventories $992,800759,200$ 

Prepaid expenses $266,767206,740$ 

Total current assets $$6,132,297$  $$4,960,960$ 

Long$-$term investments $3,244,638604,947$ 

Property, plant, and equipment $($net$)7,260,0006,534,000$ 

Total assets $$16,636,935$  $$12,099,907$ 

Liabilities

Current liabilities $$2,114,585$  $$1,592,257$ 

Long$-$term liabilities:

Mortgage note payable, $8\%$ $$2,970,000$  $$0$ 

Bonds payable, $8\%3,630,0003,630,000$ 

Total long$-$term liabilities $$6,600,000$  $$3,630,000$ 

Total liabilities $$8,714,585$  $$5,222,257$ 

Stockholders' Equity

Preferred $$0\mathrm{.}70$ stock, $$50$ par $$1,000,000$  $$1,000,000$ 

Common stock, $$10$ par $1,140,0001,140,000$ 

Retained earnings $5,782,3504,737,650$ 

Total stockholders' equity $$7,922,350$  $$6,877,650$ 

Total liabilities and stockholders' equity $$16,636,935$  $$12,099,907$ 

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.