PR 14-4B Measures of liquidity, solvency and profital ity Obj. 3, 4, 5 abilities The comparative financial statements of Stargel Inc. are as follows. The market price of Stargel holders' common stock was $119.70 on December 31, 20Y2. uity, 0.4 Stargel Inc. For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 CEL TEMPLATIE 55.375.000 $4545,.000 925,000 55,470,000 Retained earnings, January 1 Total Dividends: 45.000 50,000 45.000 50.000 On preferred stock $5.375,000 Stargel Inc Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 $10,000,000 $9,400,000 5,350,000 4950.000 Selling expenses Administrative expenses 2,000 000 $1,880,000 1,500,000 1.410,000 150 140,000 S 1,300,000 $1,300,000 150,000 Other expense (interest) Income before income tax 170,000 230,000 ..$ 900,000 225,000 925,000 Net income Stargel Inc. December 31, 20Y2 and 20Y1 20Y2 20Y1 Assets Current assets: Cash Marketahle securities Accounts receivable (net).... nventories 5 500.000 400.000 1010.000 1,000.000 510.000 950,000 250,000 229.000 $3.690.000 $3.089.000 2.350.000 2.300.000 3.366,000 $9,780,000 $8,755,000 740,000 1,190,000 Long-term investments Property, plant, and equipment (net) Total assets 3,740,000 . 900,.000 880000 Long-term liabilities: Mortgage note payable, 10% payable, 10% Total long-term liabilities 200,000 1.500,000 1.500 1.700,000 $1.500,000 2,600,000 $2,380,000 Stockholders Equity 500,000 S 500,000 Common stock, $S par 500,000500,000 6.180.0005375.000 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) Chapt 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