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PLEASE HELP Measures of liquidity, Solvency, and Profitability The comparative financial statements of Stargel Inc. are as follows. The market price of Stargel common stock
PLEASE HELP
Measures of liquidity, Solvency, and Profitability
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 | ||||||
20Y2 | 20Y1 | |||||
Retained earnings, January 1 | $5,375,000 | $4,545,000 | ||||
Net income | 900,000 | 925,000 | ||||
Dividends: | ||||||
Preferred stock dividends | (45,000) | (45,000) | ||||
Common stock dividends | (50,000) | (50,000) | ||||
Retained earnings, December 31 | $6,180,000 | $5,375,000 |
Stargel Inc. | ||||
Comparative Income Statement | ||||
For the Years Ended December 31, 20Y2 and 20Y1 | ||||
20Y2 | 20Y1 | |||
Sales | $10,000,000 | $9,400,000 | ||
Cost of merchandise sold | 5,350,000 | 4,950,000 | ||
Gross profit | $4,650,000 | $4,450,000 | ||
Selling expenses | $2,000,000 | $1,880,000 | ||
Administrative expenses | 1,500,000 | 1,410,000 | ||
Total operating expenses | $3,500,000 | $3,290,000 | ||
Income from operations | $1,150,000 | $1,160,000 | ||
Other revenue and expense: | ||||
Other revenue | 150,000 | 140,000 | ||
Other expense (interest) | (170,000) | (150,000) | ||
Income before income tax expense | $1,130,000 | $1,150,000 | ||
Income tax expense | 230,000 | 225,000 | ||
Net income | $900,000 | $925,000 |
Stargel Inc. | |||||||
Comparative Balance Sheet | |||||||
December 31, 20Y2 and 20Y1 | |||||||
20Y2 | 20Y1 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash | $500,000 | $400,000 | |||||
Marketable securities | 1,010,000 | 1,000,000 | |||||
Accounts receivable (net) | 740,000 | 510,000 | |||||
Inventories | 1,190,000 | 950,000 | |||||
Prepaid expenses | 250,000 | 229,000 | |||||
Total current assets | $3,690,000 | $3,089,000 | |||||
Long-term investments | 2,350,000 | 2,300,000 | |||||
Property, plant, and equipment (net) | 3,740,000 | 3,366,000 | |||||
Total assets | $9,780,000 | $8,755,000 | |||||
Liabilities | |||||||
Current 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 | 500,000 | |||||
Retained earnings | 6,180,000 | 5,375,000 | |||||
Total stockholders' equity | $7,180,000 | $6,375,000 | |||||
Total liabilities and stockholders' equity | $9,780,000 | $8,755,000 |
Required:
Determine the following measures for 20Y2, rounding to one decimal place, except 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.
Number of days' sales in receivables days Inventory turnover Number of days' sales in inventory days Ratio of fixed assets to long-term liabilities Ratio of liabilities to stockholders' equity Times interest earned Asset turnover - Return on total assets % - Return on stockholders' equity % - Return on common stockholders' equity % - Earnings per share on common stock - Price-earnings ratio - Dividends per share of common stock Dividend yield %Step by Step Solution
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