The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $82.80 on December 31, 20Y2. Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 1 $3,692,000.00 $3,262,000.00 Retained earnings, January 1 2 629,000.00 540,000.00 3 Net income $4,321,000.00 $3,802,000.00 Total Dividends: $10,000.00 $10,000.00 On preferred stock 6 100,000.00 100,000.00 On common stock 7 $110,000.00 $110,000.00 Total dividends $4,211,000.00 $3,692,000.00 Retained earnings, December 31 20Y2 20Y1 1 $10,860,000.00 $10,000,000.00 2 Sales Cost of goods sold 6,000,000.00 5,460,000.00 3 $4,540,000.00 $4,860,000.00 Gross profit 4 $2,160,000.00 $2,000,000.00 Selling expenses 5 1,500,000.00 Administrative expenses 1,627,500.00 6 $3,787,500.00 $3,500,000.00 Total operating expenses ncome from operations $1,072,500.00 $1,040,000.00 20,000.00 99,500.00 9 Other income $1,172,000.00 $1,060,000.00 10 11 Other expense (interest) 133,000.00 120,000.00 $1,039,000.00 $940,000.00 Income before income tax 12 13 Income tax expense 410,000.00 400,000.00 $629,000.00 $540,000.00 14 Net income Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 20Y2 20Y1 1 Assets 3 Current assets: $1,050,000.00 $950,000.00 Cash 4 Marketable securities 301,000.00 420,000.00 5 Accounts receivable (net) 586,000.00 500,000.00 6 Inventories 430,000.00 380,000.00 Prepaid expenses 107,000.00 20,000.00 $2,474,000.00 $2,270,000.00 Total current assets 800,000.00 800,000.00 10 Long-term investments 5,750,000.00 5,184,000.00 11 Property, plant, and equipment (net) $9,024,000.00 $8,254,000.00 12 Total assets Liabilities 13 $863,000.00 $812,000.00 14 Current liabilities Long-term liabilities: 15 $200,000.00 $0.00 Mortgage note payable, 6%, 16 3,000,000.00 3,000,000.00 Bonds payable, 4%, $3,200,000.00 $3,000,000.00 Total long-term liabilities 18 $4,063,000.00 $3,812,000.00 19 Total liabilities Stockholders' Equity 20 21 Preferred 49% stock, $5 par $250,000.00 $250,000.00 22 Common stock, $5 par 500,000.00 500,000.00 23 Retained earnings 4,211,000.00 3,692,000.00 $4,961,000.00 $4,442,000.00 Total stockholders' equity 74 $9,024,000.00 $8,254,000.00 Total liabilities and stockholders' equity 25 17 1. Working Capital 1,611,000 2. Current ratio 2.9 3. Quick ratio 2.2 4. Accounts receivable turnover 20.0 5. Number of days' sales in receivables 18.3 6. Inventory turnover 14.8 Number of days' sales in inventory 24.6 8. Ratio of fixed assets to long-term liabilities 1.8 9. Ratio of liabilities to stockholders' equity 0.8 10. Times interest earned 8.8 1.3 X 11. Asset turnover 12. Return on total assets 8.8 % 13. Return on stockholde rs' equity 8.5 X % 13.2 X % 14. Return on common stockholders' equity 15. Earnings per share on common stock S 16. Price-earnings ratio