1. Measures of liquidity, Solvency, and Profitability

   The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 69 on December 31, 20Y2.

   Marshall Inc.
   Comparative Retained Earnings Statement
   For the Years Ended December 31, 20Y2 and 20Y1
   			20Y2		20Y1
   Retained earnings, January 1			$ 4,486,750		$ 3,793,350
   Net income			1,050,000		776,900
   Total			$5,536,750		$ 4,570,250
   Dividends:
   	On preferred stock		$ 13,300		$ 13,300
   	On common stock		70,200		70,200
   		Total dividends	$ 83,500		$ 83,500
   Retained earnings, December 31			$ 5,453,250		$ 4,486,750

   Marshall Inc.
   Comparative Income Statement
   For the Years Ended December 31, 20Y2 and 20Y1
   	20Y2		20Y1
   Sales	$ 7,192,690		$ 6,627,030
   Cost of goods sold	2,434,550		2,239,790
   Gross profit	$ 4,758,140		$ 4,387,240
   Selling expenses	$ 1,698,730		$ 2,076,660
   Administrative expenses	1,447,070		1,219,620
   Total operating expenses	$3,145,800		$3,296,280
   Income from operations	$ 1,612,340		$ 1,090,960
   Other revenue	84,860		69,640
   	$ 1,697,200		$ 1,160,600
   Other expense (interest)	504,000		277,600
   Income before income tax	$ 1,193,200		$ 883,000
   Income tax expense	143,200		106,100
   Net income	$ 1,050,000		$ 776,900

   Marshall Inc.
   Comparative Balance Sheet
   December 31, 20Y2 and 20Y1
   			20Y2		20Y1
   Assets
   Current assets
   	Cash		$ 1,471,280		$ 1,022,400
   	Marketable securities		2,226,810		1,694,260
   	Accounts receivable (net)		1,255,600		1,182,600
   	Inventories		949,000		730,000
   	Prepaid expenses		278,350		204,480
   		Total current assets	$ 6,181,040		$ 4,833,740
   Long-term investments			2,603,785		718,860
   Property, plant, and equipment (net)			6,930,000		6,237,000
   Total assets			$ 15,714,825		$ 11,789,600
   Liabilities
   Current liabilities			$ 1,931,575		$ 1,802,850
   Long-term liabilities:
   	Mortgage note payable, 8%		$ 2,830,000		$ 0
   	Bonds payable, 8%		3,470,000		3,470,000
   		Total long-term liabilities	$ 6,300,000		$ 3,470,000
   Total liabilities			$ 8,231,575		$ 5,272,850
   Stockholders' Equity
   Preferred $0.70 stock, $50 par			$ 950,000		$ 950,000
   Common stock, $10 par			1,080,000		1,080,000
   Retained earnings			5,453,250		4,486,750
   Total stockholders' equity			$ 7,483,250		$ 6,516,750
   Total liabilities and stockholders' equity			$ 15,714,825		$ 11,789,600

   Required:

   Determine the following measures for 20Y2, 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	$
   2. Current ratio
   3. Quick ratio
   4. Accounts receivable turnover
   5. Number of days' sales in receivables		days
   6. Inventory turnover
   7. Number of days' sales in inventory		days
   8. Ratio of fixed assets to long-term liabilities
   9. Ratio of liabilities to stockholders' equity
   10. Times interest earned
   11. Asset turnover
   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-earnings ratio
   17. Dividends per share of common stock	$
   18. Dividend yield		%

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