PR 14-4A Measures of liquidity, solvency, and profitability Obj. 3, 4,5 of days' The comparative financial statements of Marshall Inc. are as follows. The market price of es, 18.3 Marshall common stock was $82.60 on December 31, 20Y2. Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 2041 1 TEMPLATE 2012 2011 Retained earnings, January 1........ $3,704,000 $3,264,000 Net income.... 600,000 550,000 $4,304,000 $3,814,000 Dividends: On preferred stock ........... $ 10,000 $ 10,000 On common stock. ........... 100,000 100,000 Total dividends ..................... $ 110,000 $ 110,000 Retained earnings, December 31 .......... $4,194,000 $3,704,000 Total ...... Statement Analysis Marshall Inc Comparative Income Statement For the Years Ended December 31, 2012 and 2011 717 Sales 2012 2011 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 $10,850,000 $10,000,000 6.000.000 5.450.000 $ 4850.000 54USSO DO $ 2.170.000 $2.000.000 1627,500 1,500,000 $ 3.797.500 53.500,000 $ 1.052.500 $ 1.050,000 99.500 20.000 $ 1152.000 5 1,070.000 132.000 120.000 $ 100.000 5 950.000 420.000 400.000 $ 600.000 $ 550.000 Marshall Inc. Comparative Balance Sheet December 31, 2012 and 2011 2012 Current assets: 2011 Cash.. Marketable securities... Accounts receivable (net).. $1,050.000 $950,000 301,000 Inventories 420,000 585,000 Prepaid expenses .......... 500,000 420,000 380.000 Total current assets ...... 108.000 20.000 Long-term investments .... $24641000 $2,270.000 Property, plant, and equipment (net). 800,000 800,000 Total assets .......... 5,184000 $9.024,000 58541000 Current liabilities..... $ 380.000 $ 800.000 Long-term liabilities: Mortgage note payable, 6% $ 200.000 $ Bonds payable, 4%, 3,000,000 3.000.000 Total long-term liabilities.. $31200.000 $3,000,000 Total liabilities .. $ 4,000,000 ST $3.800.000 Stockholders' Equity $ 250,000 Preferred 4% stock. 55 par.......... $250.000 500.000 500.000 Common stock, $5 par............. 4,194,000 3.704,000 Retained earnings... $4.944,000 $4,454.000 Total stockholders' equity.. $9024000 $8.254.000 Total liabilities and stockholders'equity... Instructions Determine the following measures for 20Y2 (round to one decimal place, including percentaises except for per-share amounts): 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 (Contined) 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
