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****READ*** Need answers only for question 5 , 7 , 8 and from 9 to 19 please answer all the questions mentioned Measures of liquidity,
****READ*** Need answers only for question 5 , 7 , 8 and from 9 to 19 please answer all the questions mentioned
Measures of liquidity, solvency, and profitability 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 201 Retained earnings, January 1 $3,704,000 $3,264,000 Net income 600,000 $550,000 Dividends: On preferred stock (10,000) (10,000) (100,000) (100,000) On common stock Increase in retained earnings $ 490,000 $440,000 $4,194,000 $3,704,000 Retained earnings, December 31 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 201 Sales $10,850,000 $10,000,000 Cost of goods sold (6,000,000) (5,450,000) Gross profit $4,550,000 4,850,000 Selling expenses (2,170,000) $(2,000,000) Administrative expenses (1,627,500) (1,500,000) Total operating expenses $(3,797,500) $(3,500,000) Operating income $1,050,000 $1,052,500 Other revenue and expense: Other revenue 99,500 20,000 (132,000) (120,000) Other expense (interest) $ 1,020,000 Income before income tax expense 950,000 (400,000) (420,000) Income tax expense Net income 600,000 $550,000 Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 202 20Y1 Assets Current assets: Cash $1,050,000 950,000 Marketable securities 420,000 301,000 Accounts receivable (net) 585,000 500,000 Inventories 420,000 380,000 Prepaid expenses 108,000 20,000 $2,270,000 otal current assets $2,464,000 Long-term investments roperty, plant, and equipment (net) 800,000 800,000 5,184,000 5,760,000 $9,024,000 $8,254,000 otal assets Liabilities Current liabilities $800,000 880,000 Long-term liabilities: Mortgage note payable, 6% Bonds payable, 4% $200,000 $0 3,000,000 3,000,000 otal long-term liabilities otal liabilities $3,200,000 $3,000,000 $ 4,080,000 $3,800,000 Stockholders' Equity Preferred 4% stock, $5 par $250,000 $250,000 Common stock, $5 par Retained earnings otal stockholders' equity 500,000 500,000 4,194,000 3,704,000 $ 4,944,000 $4,454,000 $9,024,000 $8,254,000 otal liabilities and stockholders' equity Determine the following measures for 20Y2. Round to one decimal place, including percentages, except for per-share amounts, which should be rounded to the nearest cent. 1. Working Capital 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover 5. Number of days' sales in receivables 5. Inventory turnover 7. Number of days' sales in inventory B. Ratio of fixed assets to long-term liabilities . 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 yieldStep by Step Solution
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