Question
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 64 on December 31, 20Y2. Marshall
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 64 on December 31, 20Y2. Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Retained earnings, January 1 $ 2,419,025 $ 2,037,375 Net income 577,600 417,300 Total $2,996,625 $ 2,454,675 Dividends: On preferred stock $ 9,100 $ 9,100 On common stock 26,550 26,550 Total dividends $ 35,650 $ 35,650 Retained earnings, December 31 $ 2,960,975 $ 2,419,025 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales $ 3,312,375 $ 3,051,840 Cost of goods sold 1,165,080 1,071,870 Gross profit $ 2,147,295 $ 1,979,970 Selling expenses $ 707,890 $ 893,720 Administrative expenses 603,025 524,880 Total operating expenses 1,310,915 1,418,600 Income from operations $ 836,380 $ 561,370 Other revenue 44,020 35,830 $ 880,400 $ 597,200 Other expense (interest) 224,000 123,200 Income before income tax $ 656,400 $ 474,000 Income tax expense 78,800 56,700 Net income $ 577,600 $ 417,300 Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 Dec. 31, 20Y2 Dec. 31, 20Y1 Assets Current assets Cash $ 684,310 $ 612,000 Marketable securities 1,035,710 1,014,170 Accounts receivable (net) 620,500 584,000 Inventories 467,200 365,000 Prepaid expenses 129,465 122,400 Total current assets $ 2,937,185 $ 2,697,570 Long-term investments 1,437,668 857,863 Property, plant, and equipment (net) 3,360,000 3,024,000 Total assets $ 7,734,853 $ 6,579,433 Liabilities Current liabilities $ 863,878 $ 1,510,408 Long-term liabilities Mortgage note payable, 8 % $ 1,260,000 $ 0 Bonds payable, 8 % 1,540,000 1,540,000 Total long-term liabilities $ 2,800,000 $ 1,540,000 Total liabilities $ 3,663,878 $ 3,050,408 Stockholders' Equity Preferred $ 0.70 stock, $ 40 par $ 520,000 $ 520,000 Common stock, $ 10 par 590,000 590,000 Retained earnings 2,960,975 2,419,025 Total stockholders' equity $ 4,070,975 $ 3,529,025 Total liabilities and stockholders' equity $ 7,734,853 $ 6,579,433 Required: Determine the following measures for 20Y2, rounding to one decimal place, except for dollar amounts, which should be rounded to the nearest cent.
Use the rounded answer of the requirement for subsequent requirement, if required. Assume 365 days a year. 1. Working capital $ 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover 5. Number of days' sales in receivables days 6. Inventory turnover 7. Number of days' sales in inventory days 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 %
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