Nineteen measures of solvency and profitability The comparative financial statements of Macallan Inc. are as follows. The market price of Macallan Inc. common stock was $25 on December 31, 20Y2. Macallan Inc. Comparative Retained Earnings Statement For the years ended December 31, 2012 and 20Y1 20Y2 Retained earnings, January 1. Add net income for year Total Deduct dividends: On preferred stock. On common stock... Total......... Retained earnings, December 31 20Y1 $1,646,120 847,000 $2,493,120 $ 30,000 150,000 $ 180,000 $2,313,120 $ 976,120 850,000 $1,826,120 $ 30,000 150,000 $ 180,000 $1,646,120 Macallan Inc. Comparative Income Statement For the years ended December 31, 20Y2 and 20Y1 Sales (all on account) ....... Sales returns and allowances.. Net sales........ 2012 $9,056,000 56,000 20Y1 $7,840,000 Cost of goods sold. Gross profit..... Selling expenses Administrative expenses.. Total operating expenses Income from operations. Other income... Other expense (interest). Income before income tax Income tax expense... Net income.. 40,000 $9,000,000 $7,800,000 4,500,000 3,680,000 $4,500,000 $4,120,000 $1,936,000 $1,840,000 1,296,000 1,216,000 $3,232,000 $3,056,000 $1,268,000 $1,064,000 128,000 $1,396,000 309,000 $1,087,000 240,000 $ 847,000 96,000 $1,160,000 110,000 $1,050,000 200,000 $ 850,000 Macallan Inc. Comparative Balance Sheet December 31, 2012 and 20Y1 Assets Dec. 31, 20Y2 Dec. 31, 20Y1 Current assets: Cash...... Temporary investments. Accounts receivable (net).. Inventories..... Prepaid expenses. Total current assets.. Long-term investments.. Property, plant, and equipment (net). Total assets .... Liabilities $ 420,000 760,000 $ 306,000 408,000 663,000 1,072,700 92,400 $ 3,008,100 825,000 6,450,020 $10,283,120 $ 770,000 482,120 850,000 89,250 $2,135,370 637,500 5,100,000 $7,872,870 Current liabilities.... $ 726,750 Long-term liabilities: Mortgage note payable. 12%. due 2017 $ 1,200,000 $ 0 Bonds payable, 11%, due 20Y9 1,500,000 Total long-term liabilities.... $ 2,700,000 1,000,000 $1,000,000 Total liabilities... $ 3,470,000 $1,726,750 Stockholders' Equity Preferred $2.00 stock, $100 par.... $ 1,500,000 $1,500,000 Common stock, $5 par.... Retained earnings...... Total stockholders' equity... Total liabilities and stockholders' equity.. 3,000,000 2,313,120 3,000,000 1,646,120 $ 6,813,120 $6,146,120 $10,283,120 $7,872,870 Instructions Determine the following measures, rounding to one decimal place: 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 fixed assets to long-term liabilities 9. Ratio of liabilities to stockholders' equity 10. Number of times interest charges earned 11. Number of times preferred dividends earned 12. Ratio of net sales to assets 13. Rate earned on total assets 14. Rate earned on stockholders' equity 15. Rate earned on common stockholders' equity 16. Earnings per share on common stock 17. Price-earnings ratio 18. Dividends per share of common stock 19. Dividend yield Score: 0 instructions Answers are entered in the cells with gray backgrounds. Cells with non-gray backgrounds are protected and cannot be edited. An asterisk (*) will appear to the right of an incorrect entry. Current Art - Current Liabilities Calculated Talua 1. Working capital: Ratio Humerater + Denominatur = Talve 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 fixed assets to long-term liabilities 9. Ratio of liabilities to stockholders' equity 10. Number of times interest charges earned 11. Number of times preferred dividends earned 12. Ratio of net sales to assets 13. Rate earned on total assets 14. Return on stock- holders' equity 15. Return on common stockholders' equity 16. Earnings per share on common stock 17. Price-earnings ratio 18. Dividends per share of common stock 19. Dividend yield