1. Measures of liquidity, The ability of a company to make its periodic interest payments and repay the face amount of debt at maturity.Solvency, and The ability of a firm to generate earnings.Profitability

The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 62 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			$ 2,732,300		$ 2,318,400
Net income			596,400		474,900
Total			$3,328,700		$ 2,793,300
Dividends:
	On preferred stock		$ 9,800		$ 9,800
	On common stock		51,200		51,200
		Total dividends	$ 61,000		$ 61,000
Retained earnings, December 31			$ 3,267,700		$ 2,732,300

Marshall Inc.
Comparative Income Statement
For the Years Ended December 31, 20Y2 and 20Y1
	20Y2		20Y1
Sales	$ 3,810,600		$ 3,510,920
Cost of goods sold	1,312,540		1,207,540
Gross profit	$ 2,498,060		$ 2,303,380
Selling expenses	$ 874,070		$ 1,050,330
Administrative expenses	744,580		616,860
Total operating expenses	$1,618,650		$1,667,190
Income from operations	$ 879,410		$ 636,190
Other revenue	46,290		40,610
	$ 925,700		$ 676,800
Other expense (interest)	248,000		136,800
Income before income tax	$ 677,700		$ 540,000
Income tax expense	81,300		65,100
Net income	$ 596,400		$ 474,900

Marshall Inc.
Comparative Balance Sheet
December 31, 20Y2 and 20Y1
			20Y2		20Y1
Assets
Current assets
	Cash		$ 684,190		$ 566,250
	Marketable securities		1,035,530		938,370
	Accounts receivable (net)		678,900		635,100
	Inventories		511,000		394,200
	Prepaid expenses		129,449		113,250
		Total current assets	$ 3,039,069		$ 2,647,170
Long-term investments			1,729,561		461,333
Property, plant, and equipment (net)			3,720,000		3,348,000
Total assets			$ 8,488,630		$ 6,456,503
Liabilities
Current liabilities			$ 920,930		$ 814,203
Long-term liabilities:
	Mortgage note payable, 8%		$ 1,390,000		$ 0
	Bonds payable, 8%		1,710,000		1,710,000
		Total long-term liabilities	$ 3,100,000		$ 1,710,000
Total liabilities			$ 4,020,930		$ 2,524,203
Stockholders' Equity
Preferred $0.70 stock, $40 par			$ 560,000		$ 560,000
Common stock, $10 par			640,000		640,000
Retained earnings			3,267,700		2,732,300
Total stockholders' equity			$ 4,467,700		$ 3,932,300
Total liabilities and stockholders' equity			$ 8,488,630		$ 6,456,503

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. The excess of the current assets of a business over its current liabilities.Working capital	$
2. A financial ratio that is computed by dividing current assets by current liabilities.Current ratio
3. A financial ratio that measures the ability to pay current liabilities with quick assets (cash, temporary investments, accounts receivable), computed as quick assets divided by current liabilities.Quick ratio
4. The relationship between sales and accounts receivable, computed by dividing the sales by the average net accounts receivable; measures how frequently during the year the accounts receivable are being converted to cash.Accounts receivable turnover
5. The relationship between sales and accounts receivable, computed by dividing the average accounts receivable by the average daily sales.Number of days' sales in receivables		days
6. The relationship between the volume of goods sold and inventory, computed by dividing the cost of goods sold by the average inventory.Inventory turnover
7. The relationship between the volume of sales and inventory, computed by dividing average inventory by the average daily cost of goods sold.Number of days' sales in inventory		days
8. A solvency ratio that measures how much fixed assets a company has to support its long-term debt.Ratio of fixed assets to long-term liabilities
9. A comprehensive leverage ratio that measures the relationship of the claims of creditors to stockholders' equity, calculated as total liabilities divided by total stockholders' equity.Ratio of liabilities to stockholders' equity
10. A ratio that measures the risk that interest payments will not be made if earnings decrease, calculated as income before income tax and interest expense divided by interest expense.Times interest earned
11. Ratio that measures how effectively a business uses its assets to generate revenues, computed as sales divided by average total assets.Asset turnover
12. A measure of the profitability of assets, without regard to the equity of creditors and stockholders in the assets.Return on total assets		%