Obj. 3,4,5 2011 PR 14-4B Measures of liquidity, solvency and profitability bilities to the comparative financial statements of Stargel Inc. are as follows. The market price of Stargel Ekholders common stock was $119.70 on December 31, 20Y2. equity, 0.4 Stargel Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 2012 and 2011 TE 2012 Retained earnings, January 1 $5,375,000 $4,545.000 Net income $ 900,000 $ 925,000 Dividends: On preferred stock (45.000) (45,000) On common stock.. (50,000) (50,000) Increase in retained earnings $ 805,000 $ 830,000 Retained earnings, December 31 $6,180,000 55,375,000 Stargelinc Comparative Income Statement For the Years Ended December 31, 2012 and 2011 2012 Sales. $ 10,000,000 Cost of goods sold 15,350,000 Gross profit 54,650,000 Selling expenses 5. 2,000,000) Administrative expenses (1 500,000 Total operating expenses 5.0.500,000) Operating income $ 1,150,000 Other revenue and expense: Other revenue 150,000 Other expense interest (170.0001 Income before income tax expense: 5 1,130,000 Income tax expense 2230.000 900,000 Net income 2011 59,400,000 14,950.000) $ 4450.000 5 (1,890.000 (1410,000) 5.03.290,000 $ 1.160,000 140,000 (150,000 $ 1.150,000 (225.000 $ 925,000 Stargel Inc Comparative Balance Sheet December 31, 2012 and 2041 2012 2011 $ 500.000 1,010,000 740.000 1190.000 250,000 $3,690,000 2,350,000 3.740,000 $9,780.000 $ 400,000 1.000.000 510.000 950,000 229,000 53,089,000 2,300,000 3.366 000 58,755,000 Assets Current assets. Cash.. Marketable securities Accounts receivable (net). Inventories Prepaid expenses. Total current assets. Long-term investments Property, plant, and equipment (net) Total assets Liabilities Current liabilities... Long-term liabilities: Mortgage note payable, 10% Bonds payable, 10% Total long-term liabilities Total abilities Stockholders' Equity Preferred $0.90 stock, $10 par Common stock, 55 par Retained earnings Total stockholders'equity Total liabilities and stockholders' equity. $ 900,000 5 880.000 $ 200,000 1.500.000 51.700.000 52.600.000 5 0 1.500,000 $ 1.500,000 52.380,000 $ 500,000 500.000 6,180,000 $7180.000 $9,780,000 $ 500,000 500,000 5.375.000 56 375.000 $8.755.000 Instructions Determine the following measures for 2072. Round to one decimal place including percentages, except for per share amounts, which should be rounded to the nearest cent. 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 (Continued) 14 Financial Statement Analysis 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
