PR 14-4A Measures of liquidity, solvency, and profitability Obj. 3, 4,5 The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $82.60 on December 31, 20Y2. Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 $3,704,000 600,000 $4,304,000 20Y1 $3,264,000 550,000 $3,814,000 Retained earnings, January 1 Net income Total Dividends: On preferred stock On common stock.. Total dividends Retained earnings, December 31 $ 10,000 100,000 $ 110,000 $4,194,000 $ 10,000 100,000 $ 110,000 $3,704,000 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 2041 Sales Cost of goods sold. Gross profit Selling expenses Administrative expenses. Total operating expenses Income from operations Other income. 20Y2 20Y1 $10,850,000 $10,000,000 6,000,000 5,450,000 $ 4,850,000 $ 4,550,000 $ 2,170,000 $2,000,000 1,627,500 1,500,000 $3,797,500 $ 3,500,000 $ 1,052,500 $ 1,050,000 99,500 20,000 $ 1,152,000 $1,070,000 132,000 120,000 $ 1,020,000 $ 950,000 420,000 400,000 $ 600,000 $ 550,000 Other expense (interest) Income before income tax Income tax expense Net income Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 20Y2 20Y1 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 $1,050,000 301,000 585,000 420,000 108,000 $ 2,464,000 800,000 5,760,000 $ 9,024,000 $ 950,000 420,000 500,000 380,000 20,000 $2,270,000 800,000 5,184,000 $8,254,000 $ 880,000 $ 800,000 $ 200,000 3,000,000 $ 3,200,000 $ 4,080,000 $ 0 3,000,000 $3,000,000 $3,800,000 Current liabilities. Long-term liabilities: Mortgage note payable, 6%, Bonds payable, 4%, Total long-term liabilities. Total liabilities Stockholders' Equity Preferred 4% stock, $5 par Common stock, $5 par.. Retained earnings. Total stockholders' equity Total liabilities and stockholders' equity. $ 250,000 500,000 4,194,000 $ 4,944,000 $ 9,024,000 $ 250,000 500,000 3,704,000 $4,454,000 $8,254,000 Instructions Determine the following measures for 20Y2 (round to one decimal place, including percentage 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 10. Times interest earned (Continue Chapter 14 Financial Statement Analysis 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