PR 14-4B Measures of liquidity, solvency and profitability Obj. 3,4,5 9. Ratio of liabilities The comparative financial statements of Stargel Inc. are as follows. The market price of Stargel to stockholders' common stock was $119.70 on December 31, 20Y2 equity. 0.4 EXCEL TEMPLATE Stargel Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 2012 Retained earnings, January 1..... $5,375,000 Net income 900,000 Total $6,275,000 Dividends: On preferred stock ........ $ 45,000 On common stock.. . Total dividends. 50,000 Retained earnings. December 31 .... $ 95.000 $6.180,000 2011 $4,545,000 925.000 $5.470.000 $ 45.000 50.000 $ 95.000 $5375.000 Chapter 14 Financial Statement Analysis Starpeline Comparative Income Statement w the Year Ended December 31, 2012 and 2011 2012 2011 59.400,000 $10.000.000 5.350.000 $ 4650.000 2000,000 Cout of goods sold Gross profit............ Selling expenses Administrative expenses... Total operating expenses. Income from operations ..... Other income.......... 4.950.000 54 450.000 $1,880,000 1.410,000 $3.290,000 $1,160,000 $ 150.000 $ 1,300,000 Other expense interest)... Income before income tax..... Income tax expense..... Net income........... $ 1,130,000 230 000 $ 900,000 $1.300.000 150.000 $1,150.000 225.000 5 925,000 Comparative Balance Sheet December 31, 2012 and 2041 2012 Current assets Cash...................... $ 500.000 $ 400.000 Marketable securities 1,010,000 1,000,000 Accounts receivable (net)....... 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.. . 59,780,000 $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, 55 par..... . . 500.000 500.000 Retained earnings...... 6.180.000 5,375,000 Total stockholders' equity. 57180,000 56,375,000 Total abilities and stockholders' equity.. $9,780,000 $8,755,000 Instructions Determine the following measures for 20Y2 (round to one decimal place including percentages 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 (Continued) Chapter 14 Financial Statement Analysis 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 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