measures of liquidity, solvency, and profitabilty
Ch 17-3 Exercises and Problems eBook Calculator Print Item Measures of liquidity, Solvency, and Profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 54 on December 31, 2012. Marshall Inc. 2011 For the Years Ended December 31, 2012 and 2041 20Y2 Retained earnings, January 1 $3,353,300 Net income 759,200 Total $4,112,500 Q $2,837,900 581,200 $3,419,100 Dividends: On preferred stock $9,800 $9,800 56,000 56,000 Total dividends $65,800 $65,800 $3,353,300 $4,046,700 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 2041 2012 2011 Ch 17-3 EXULISUS DIUTUDIUM Sales Cost of goods sold $4,888,080 1,861,500 $3,026,580 Gross profit Selling expenses $1,003,010 854,410 Administrative expenses Total operating expenses Income from operations $1,857,420 $1,169,160 $4,503,610 1,712,580 $2,791,030 $1,247,630 732,740 $1,980,370 $810,660 51,740 $862,400 202,400 $660,000 78,800 $581,200 Other revenue 61,540 Other expense interest) Income before income tax $1,230,700 368,000 $862,700 103,500 $759,200 Income tax expense Net income Marshall Inc. Comparative Balance Sheet December 31, 2012 and 2041 20Y2 Assets Ch 17-3 Exercises and Problems eBook Calculator Print Item Current assets Cash $773,800 1,282,290 Marketable securities $1,172,600 1,774,740 934,400 700,800 Accounts receivable (net) 876,000 540,200 Inventories Prepaid expenses 221,844 $4,804,384 1,323,686 Total current assets Long-term investments Property, plant, and equipment (net) Total assets 154,760 $3,627,050 251,425 4,968,000 $8,846,475 5,520,000 $11,648,070 Liabilities $1,501,370 $1,463,175 Current liabilities Long-term liabilities: Mortgage note payable, 8% Bonds payable, 8% Total long-term liabilities Total liabilities Stockholders' Equity Preferred $0.70 stock, $50 par Common stock, $10 par $2,070,000 2,530,000 $4,600,000 $6,101,370 2,530,000 $2,530,000 $3,993,175 $700,000 800,000 $700,000 800,000 Total stockholders' equity Total liabilities and stockholders' equity $5,546,700 $11,648,070 $4,853,300 $8,846,475 Required: Determine the following measures for 2012, rounding to one decimal place, except for dollar amounts, which should be rounded to the nearest cent. Use t 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 Ch 17-3 Exercises and Problems 1. WOTKI Capital eBook Calculator Print Iter 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
