Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

------------------------------------------------------------------------------------------------------------------------------------------------------------- Required: Determine the following measures for 20Y2, rounding to one decimal place, except for dollar amounts, which should be rounded to t a year.

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

-------------------------------------------------------------------------------------------------------------------------------------------------------------

image text in transcribed

Required: Determine the following measures for 20Y2, rounding to one decimal place, except for dollar amounts, which should be rounded to t a year. 1. Working capital 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover 5. Number of days' sales in receivables 6. Inventory turnover 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 $1,235,262V 3.1 2.4 5.2 70.20 days 2.9 125.9 days 1.2 0.8 4.2 0.6 14.4 % 13.95 X % 409,250 X 5.8 X Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Income from operations Other income $ 2,163,720 825,630 $1,338,090 $ 413,640 352,360 766,000 $ 572,090 30,110 $602,200 144,000 $ 458,200 55,000 $ 403,200 $ 1,993,570 759,580 1,233,990 $520,280 305,560 825,840 408,150 26,050 434,200 79,200 355,000 42,600 312,400 Other expense (interest) Income before income tax Income tax expense Net income Measures of liquidity, Solvency and Profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall Inc. common stock was $ 58 on Decembe 31, 20Y2 Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 1,804,725 403,200 $2,142,625 Retained earnings, January 1 Net income Total Dividends $ 1,524,975 312,400 1,837,375 s 13,300 19,350 32,650 $2,175,275 13,300 19,350 32,650 1,804,725 On preferred stock On common stoclk Total dividends Retained earnings, December 31 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 December 31, 20Y2 and 20Y1 Dec. 31, 20Y2 Dec. 31, 20Y1 Asset Current assets 396,490 600,090 430,700 321,200 75,002 1,823,482 1,390,013 2,160,000 $5,373,495 Cash Marketable securities Accounts receivable (net) Inventories Prepaid expenses $ 416,340 689,940 401,500 248,200 83,270 1,839,250 702,714 1,944,000 $4,485,964 Total current assets Long-term investments Property, plant, and equipment (net) Total assets Liabilities Current liabilities 588,220 $ 881,239 Long-term liabilities 810,000 990,000 1,800,000 2,388,220 Mortgage note payable, 8 % $0 990,000 $990,000 $ 1,871,239 Bonds payable, 8 % Total long-term liabilities Total liabilities Stockholders' Equity 380,000 430,000 2,175,275 $2,985,275 $5,373,495 380,000 430,000 1,804,725 $2,614,725 $4,485,964 Preferred $ 0.70 stock, $ 20 par Common stock, $ 10 par Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Required ounding 5. Compute the price of $5,270,353 received for the bonds by using Exhibit 5 and Exhibit . (Round you PV velues to S decimal places and the final answers to the nearest dollar) Your total may vary slightly from the price given due to rounding differences Present value of the face amount Present value of the semi-annual interest payments Price received for the bonds 3,847,500 ) 5,270,353 Feechack Check My W Partially correct

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions