Questions 5, 7 and 12-18

Chapter 17 Financial Statement PR 17-4A Measures of liquidity, solvency, and profitablin The comparative financial statements of Marshall Inc, ars OBJ. 3, 4,5 on Decemht l nsc are as follows. The market price of Marshal Incsatement For the Years Ended December 31, 20Y2 and 20 Comparative Retained Earnin ov2 201 Retained earnings, January 1 53,704,000 3,264,000 Net income Total $1304,000 53814000 On preferred stock s 10,000 $ 10000 Total dividends 110.000 s 110.000 Retained earnings, December 31... $3.704 94,000 e Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y1 510,850,000 $10,000,000 4 850.00O 4,550,000 2170000 2,000,000 Sales Selling expenses Administrative expenses Total operating expenses $3,797.500 3500,000 Other expense (interest) Income before income tax Income tax expense.. Net income $ 1,052,500 S 1,050,000 1,152,000 $1,070,000 1,020,000 950,000 S 600,000 550,000 420,000 400,000 Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 20Y2 20Y1 Current assets: Cash $1,050,000 950,000 301,000 585,000 420,000 500,000 Marketable securities Accounts receivable (net) 20,000 5 2.464,000 2,270.000 800,000 5,760.000 3254,00 024000$8,254,000 Prepaid expenses Total current assets. Long-term investments Property, plant, and equipment (net) Total assets . 5 880000$ 800,000 Current liabilities Long-term liabilities 5 200,000 Bonds payable, 4% Total liabilities Preferred 496 stock, $5 par 3,000,000 5 3,200,000$3,000,000 Total long-term liablities Stockholders' Equity s250,000 $ 250.000 500,000250,000 Retained earnings Total stockholders' equity Total liabilities and stockholders' equity.... 4,194,000 $4.944,000 500,000 3,704,000 $4454.000 $ 9,024,000 8,254,000 Continued)