Measures of liquidity, Solvency, and Profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $82.60 on December 31, 2012. Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 2012 and 2011 2012 2011 Retained earnings, January $3,704,000 $3,264,000 Net Income 600,000 550,000 Dividends: On preferred stock (10,000) (10,000) On common stock (100,000) (100,000) Retained earnings, December 31 $4,194,000 $3.704,000 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 2012 and 2041 2012 2011 Sales 310,850,000 $10,000,000 Cost of merchandise sold 6,000,000 5.450,000 Gross pront 54,850,000 $4,550,000 eBook SD Prom supo - $2,000,000 Selling expenses Administrative expenses Total operating expenses Income from operations $2,170,000 1,627,500 $3,797,500 1,500,000 $3,500,000 $1,052,500 $1,050,000 Other revenue and expense: Other revenue 99,500 Other expense (interest) Income before income tax expense Income tax expense (132,000) $1,020,000 420,000 $600,000 20,000 (120,000) $950,000 400,000 $550,000 Net income Marshall Inc. Comparative Balance Sheet December 31, 2012 and 2041 2012 2011 Assets Current assets: Cash $1,050,000 $ 950,000 Marketable securities 301,000 420,000 Accounts receivable (net) 585.000 500.000 ebook Inventories 420,000 380,000 Prepaid expenses 108,000 20,000 Total current assets $2,464,000 $2,270,000 Long-term investments 800,000 800,000 Property, plant, and equipment (net) 5,184,000 5,760,000 $9,024,000 Total assets $8,254,000 Liabilities Current liabilities $880,000 $800,000 Long-term liabilities: Mortgage note payable, 6% $0 $3,000,000 Bonds payable, 4% Total long-term liabilities $200,000 3,000,000 $3,200,000 $4,080,000 $3,000,000 Total liabilities $3,800,000 Stockholders' Equity Preferred 4% stock $5 par $250,000 $250,000 Common stock, $5 par Retained earnings 500,000 3,704,000 500,000 4.194,000 $4,944 000 $9,024,000 Total stockholders' equity $4,454,000 Total liabilities and stockholders equity $8.254.000 Required: 3. Quick ratio 2.2 4. Accounts receivable turnover 20 5. Number of days' sales in receivables 18.3 days 6. Inventory turnover 15 7. Number of days' sales in inventory 24.3 days 8. Ratio of fixed assets to long-term liabilities 1.8 9. Ratio of liabilities to stockholders' equity 0.83 X 10. Times interest earned 8 X 11. Asset turnover 1.3 > 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 eamings ratio 17. Dividends per share of common stock 18. Dividendividid 9%
