Solve 12-18 use following Equation
Measures of liquidity, Solvency, and Profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 54 on December 31, 20Y2. Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 2012 and 2041 2042 2011 Retained earnings, January 1 $1,029,625 $876,575 Net income 227,200 179,500 Total $1,256,825 $1,056,075 Dividends: On preferred stock $7,700 $7,700 On common stock 18,750 18,750 Total dividends $26,450 $26,450 Retained earnings, December 31 $1,230,375 $1,029,625 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 2041 20Y2 20Y1 Sales $1,445,400 $1,331,700 503,700 463,400 Cost of goods sold Gross profit $941,700 $868,300 $335,020 $400,160 Selling expenses Administrative expenses 285,390 235,020 $620,410 $635,180 Total operating expenses Income from operations $321,290 $233,120 Other revenue 16,910 14,880 $338,200 $248,000 80,000 44,000 Other expense interest) Income before income tax Income tax expense $258,200 $204,000 31,000 24,500 Net income $227,200 $179,500 Marshall Inc. Comparative Balance Sheet December 31, 2012 and 2041 2012 2011 Assets Current assets Cash $277,870 $222,230 420,550 368,250 248,200 233,600 Marketable securities Accounts receivable (net) Inventories Prepaid expenses Total current assets 189,800 146,000 52,570 44,450 $1,188,990 $1,014,530 Long-term investments 571,685 289,930 Property, plant, and equipment (net) 1,300,000 1,170,000 Total assets $3,060,675 $2,474,460 Liabilities Current liabilities $360,300 $424,835 Long-term liabilities: Mortgage note payable, 8% $450,000 $0 550,000 550,000 Bonds payable, 8% Total long-term liabilities $1,000,000 $550,000 Total liabilities $1,360,300 $974,835 Stockholders' Equity Preferred $0.70 stock, $20 par $220,000 $220,000 Common stock $10 nar 250 250 non Common stock, $10 par 250,000 250,000 1,029,625 Retained earnings 1,230,375 Total stockholders' equity $1,700,375 $1,499,625 Total liabilities and stockholders' equity $3,060,675 $2,474,460 12. Return on total assets 16.1 X % 14.2 % 13. Return on stockholders' equity 14. Return on common stockholders' equity 0.9 X % 15. Earnings per share on common stock $ 8.0 X 16. Price-earnings ratio 17. Dividends per share of common stock 18. Dividend yield % 12. Divide the sum of net income plus interest expense by average total assets. Average total assets = (Beginning total assets + Ending total assets) = 2. 13. Divide net income by average total stockholders' equity. Average total stockholders' equity = (Beginning total stockholders' equity + Ending total stockholders' equity) = 2. 14. Divide net income minus preferred dividends from the retained earnings statement by average common stockholders' equity. Common stockholders' equity = Common stock + Retained earnings. Average common stockholders' equity = (Beginning common stockholders' equity + Ending common stockholders' equity) = 2. 15. Divide net income minus preferred dividends from the retained earnings statement by common shares outstanding (common stock = par value). 16. Divide common market share price by common earnings per share (use answer from requirement 15). 17. Divide common dividends (from Retained Earnings Statement) by common shares outstanding (common stock = par value). 18. Divide common dividends per share (use answer from requirement 17) by market share price
