o of liabilities holders' .4 Excel j. Paid cash for prepaid expenses, $200,000. PR 17-4B Measures of liquidity, solvency and profitability OBJ. 3,4,5 The comparative financial statements of Stargel Inc. are as follows. The market price of Stargel common stock was $119.70 on December 31, 20Y2. Stargel Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 Retained earnings, January 1. Net income Total Dividends: 20Y2 2011 $4,545,000 $5,375,000 900,000 $6,275,000 $6,180,000 925,000 $5,470,000 $ 45,000 50,000 $ 95,000 $5,375,000 Preferred stock dividends... Common stock dividends.. Total dividends... $ 45,000 50,000 Retained earnings, December 31 $ 95,000 Inc., Problem Stargel Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 Sales Cost of goods sold. Gross profit. Selling expenses Administrative expenses... Total operating expenses Income from operations Other revenue Other expense (interest) Income before income tax Income tax expense Net income Stargel Inc. Comparative Balance Sheet December 31, 2012 and 20Y1 Assets 20Y2 $10,000,000 2011 $9,400,000 5,350,000 4,950,000 $ 4,650,000 $4,450,000 $ 2,000,000 $1,880,000 1,500,000 1,410,000 $ 3,500,000 $3,290,000 $ 1,150,000 $1,160,000 150,000 $ 1,300,000 170,000 $ 1,130,000 230,000 $ 900,000 140,000 $1,300,000 150,000 $1,150,000 225,000 $ 925,000 20Y2 20Y1 Current assets: Cash Marketable securities... Accounts receivable (net): Inventories Prepaid expenses Total current assets. Long-term investments. Property, plant, and equipment (net) Total assets Current liabilities. $ 500,000 1,010,000 $ 400,000 1,000,000 740,000 510,000 1,190,000 950,000 250,000 229,000 $3,690,000 $3,089,000 2,350,000 2,300,000 3,740,000 3,366,000 $9,780,000 $8,755,000 Liabilities $ 900,000 $ 880,000 Long-term liabilities: Mortgage note payable, 10 %. $ 200,000 $ 0 Bonds payable, 10%. 1,500,000 1,500,000 Total long-term liabilities $1,700,000 $1,500,000 Total liabilities $2,600,000 $2,380,000 Stockholders' Equity Preferred $0.90 stock, $10 par. $ 500,000 $ 500,000 Common stock, $5 par. 500,000 6,180,000 500,000 5,375,000 Retained earnings. Total stockholders' equity. Total liabilities and stockholders' equity. $7,180,000 $6,375,000 $9,780,000 $8,755,000 unimal place including 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. 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 Feedback