Measures of liquidity,Solvency, andProfitability
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 54 on December 31, 20Y2.
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, 20Y2. Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 202 and 20Y1 20Y2 20Y1 Retained earnings, January 1 $3,193,500 $2,689,600 Net income 740,000 550,900 Dividends: On preferred stock (11,900) (11,900) On common stock (35,100) (35,100) Retained earnings, December 31 $3,886,500 $3,193,500 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales $3,946,380 $3,635,980 Cost of merchandise sold 1,503,070 1,382,820Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales $3,946,380 $3,635,980 Cost of merchandise sold 1,503,070 1,382,820 Gross profit $2,443,310 $2,253,160 Selling expenses $752,580 $962,550 Administrative expenses 641,080 565,310 Total operating expenses $1,393,660 $1,527,860 Income from operations $1,049,650 $725,300 Other revenue and expense: Other revenue 55,250 46,300 Other expense (interest) (264,000) (145,600) Income before income tax expense $840,900 $626,000 Income tax expense 100,900 75,100 Net income $740,000 $550,900 Marshall Inc. Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 Current assets: Cash Marketable securities Accounts receivable (net) Inventories Prepaid expenses Total current assets Long-term investments Assets Property, plant, and equipment (net) Total assets Current liabilities Long-term liabilities: Mortgage note payable, 8% Liabilities 20Y2 $585,010 885,420 766,500 584,000 110,670 $2,931,600 2,732,100 3,960,000 $9,623,700 $977,200 $1,480,000 20Y1 $803,570 1,331,640 722,700 452,600 160,710 $3,471,220 1,431,170 3,564,000 $8,466,390 $1,992,890 $0 Mortgage note payable, 8% $1,480,000 $0 Bonds payable, 8% 1,820,000 1,820,000 Total long-term liabilities $3,300,000 $1,820,000 Total liabilities $4,277,200 $3,812,890 Stockholders' Equity Preferred $0.70 stock, $40 par $680,000 $680,000 Common stock, $10 par 780,000 780,000 Retained earnings 3,886,500 3,193,500 Total stockholders' equity $5,346,500 $4,653,500 Total liabilities and stockholders' equity $9,623,700 $8,466,390 Required: D 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 1;: 2. Currentram :] 3. Quick ratio :] 4. Accounts receivable turnover :] 5. Number of days' sales in receivables :] days 6. Inventory turnover :] 7. Number of davs' sales in inventorv davs 1. Working capital 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover 5. Number of days' sales in receivables 6. Inventory turnover 7. Number of days' sales in inventory 8. Ratio of xed 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
