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, 20Y2.

Marshall Inc.

Comparative Retained Earnings Statement

For the Years Ended December 31, 20Y2 and 20Y1

20Y2

20Y1

Retained earnings, January 1

$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, 20Y2 and 20Y1

20Y2

20Y1

Sales

$10,850,000

$10,000,000

Cost of merchandise sold

6,000,000

5,450,000

Gross profit

$4,850,000

$4,550,000

Selling expenses

$2,170,000

$2,000,000

Administrative expenses

1,627,500

1,500,000

Total operating expenses

$3,797,500

$3,500,000

Income from operations

$1,052,500

$1,050,000

Other revenue and expense:

Other revenue

99,500

20,000

Other expense (interest)

(132,000)

(120,000)

Income before income tax expense

$1,020,000

$950,000

Income tax expense

420,000

400,000

Net income

$600,000

$550,000

Marshall Inc.

Comparative Balance Sheet

December 31, 20Y2 and 20Y1

20Y2

20Y1

Assets

Current assets:

Cash

$1,050,000

$ 950,000

Marketable securities

301,000

420,000

Accounts receivable (net)

585,000

500,000

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)

5,760,000

5,184,000

Total assets

$9,024,000

$8,254,000

Liabilities

Current liabilities

$880,000

$800,000

Long-term liabilities:

Mortgage note payable, 6%

$200,000

$0

Bonds payable, 4%

3,000,000

$3,000,000

Total long-term liabilities

$3,200,000

$3,000,000

Total liabilities

$4,080,000

$3,800,000

Stockholders' Equity

Preferred 4% stock, $5 par

$250,000

$250,000

Common stock, $5 par

500,000

500,000

Retained earnings

4,194,000

3,704,000

Total stockholders' equity

$4,944,000

$4,454,000

Total liabilities and stockholders' equity

$9,024,000

$8,254,000

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.

1. Working capital

$

fill in the blank 1

1,584,000

2. Current ratio

fill in the blank 2

2.8

3. Quick ratio

fill in the blank 3

2.2

4. Accounts receivable turnover

fill in the blank 4

20

5. Number of days' sales in receivables

fill in the blank 5

18.3days

6. Inventory turnover

fill in the blank 6

15

7. Number of days' sales in inventory

fill in the blank 7

24.3days

8. Ratio of fixed assets to long-term liabilities

fill in the blank 8

1.8

9. Ratio of liabilities to stockholders' equity

fill in the blank 9

0.8

10. Times interest earned

fill in the blank

11. Asset turnover

fill in the blank 11

1.3

12. Return on total assets

fill in the blank

13. Return on stockholders equity

fill in the blank 13

12.8%

14. Return on common stockholders equity

fill in the blank

15. Earnings per share on common stock

$

fill in the blank

16. Price-earnings ratio

fill in the blank

17. Dividends per share of common stock

$

fill in the blank

18. Dividend yield

fill in the blank