+ 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. Retained earnings, January 1. Net income... Dividends: On preferred stock. On common stock.. Increase in retained earnings. Retained earnings, December 31 Sales Cost of goods sold. Gross profit.. Selling expenses... Administrative expenses. Total operating expenses Operating income... Other revenue and expense: Current assets: Cash Other revenue..... Other expense (interest).. Income before income tax expense Income tax expense Net income. Marketable securities. Accounts receivable (net). Inventories.. **** Prepaid expenses Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 Total current assets Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 Current liabilities.... Long-term liabilities: Mortgage note payable, 6%, Bonds payable, 4%, Total long-term liabilities. Total liabilities Preferred 4% stock, $5 par Common stock, $5 par. Retained earnings.. Long-term investments. Property, plant, and equipment (net) Total assets. Assets Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 Liabilities ****** Stockholders' Equity Total stockholders' equity. Total liabilities and stockholders' equity.. 20Y2 $3,704,000 $ 600,000 (10,000) (100,000) $ 490,000 $4,194,000 1 $ 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 $ 1,020,000 $ (420,000) 20Y1 $3,264,000 $ 550,000 2012 (10,000) (100,000) $440,000 $3,704,000 99,500 20,000 (132,000) (120,000) 950,000 (400,000) 600,000 $ 550,000 20Y1 $1,050,000 301,000 585,000 420,000 108,000 $2,464,000 $2,270,000 800,000 800,000 5,760,000 5,184,000 $9,024,000 $8,254,000 $ 950,000 420,000 500,000 380,000 20,000 $ 880,000 $ 800,000 $ 200,000 $ 3,000,000 3,000,000 $3,200,000 $3,000,000 $4,080,000 $3,800,000 0 $ 250,000 $ 250,000 500,000 500,000 4,194,000 3,704,000 $4,944,000 $4,454,000 $9,024,000 $8,254,000

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. Marhall inc Comparative income Statement Marhat line. 1. Working capital Ratio Numerator Denominator = Calculated Value 2. Current ratio 52,464>00 2.8 3. Quick ratio 4. Accounts receivable turnover 5. Number of days" sales in receivables 6. Inventory tumover 7. Number of days' sales in inventory 8. Ratio of fixed assets to long-term liabilities 9. Ratio of liabilities to stockholders' equity 10. Timos interest earned 11. Asset tumover 12. Return on total assets 13 Retum on stockholders equity 14. Roturn on common stockholders' equity 15. Earnings per share on cormmon stock 16. Price-earnings ratio 17. Dividends per share of common stock 18