Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 66 on December 31, 20Y2. Marshall

The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 66 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 $2,435,700 $2,053,700
Net income 547,200 420,600
Dividends:
On preferred stock (9,100) (9,100)
On common stock (29,500) (29,500)
Retained earnings, December 31 $2,944,300 $2,435,700

Marshall Inc.
Comparative Income Statement
For the Years Ended December 31, 20Y2 and 20Y1
20Y2 20Y1
Sales $3,093,740 $2,850,440
Cost of merchandise sold 1,165,080 1,071,870
Gross profit $1,928,660 $1,778,570
Selling expenses $607,580 $764,470
Administrative expenses 517,570 448,970
Total operating expenses $1,125,150 $1,213,440
Income from operations $803,510 $565,130
Other revenue and expense:
Other revenue 42,290 36,070
Other expense (interest) (224,000) (123,200)
Income before income tax expense $621,800 $478,000
Income tax expense 74,600 57,400
Net income $547,200 $420,600

Marshall Inc.
Comparative Balance Sheet
December 31, 20Y2 and 20Y1
20Y2 20Y1
Assets
Current assets:
Cash $573,910 $523,710
Marketable securities 868,610 867,870
Accounts receivable (net) 613,200 576,700
Inventories 467,200 365,000
Prepaid expenses 108,577 104,740
Total current assets $2,631,497 $2,438,020
Long-term investments 1,991,673 736,368
Property, plant, and equipment (net) 3,080,000 2,772,000
Total assets $7,703,170 $5,946,388
Liabilities
Current liabilities $848,870 $860,688
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 $3,648,870 $2,400,688
Stockholders' Equity
Preferred $0.70 stock, $40 par $520,000 $520,000
Common stock, $10 par 590,000 590,000
Retained earnings 2,944,300 2,435,700
Total stockholders' equity $4,054,300 $3,545,700
Total liabilities and stockholders' equity $7,703,170 $5,946,388

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.

6. Inventory turnover fill in the blank 6
7. Number of days' sales in inventory fill in the blank 7 days
8. Ratio of fixed assets to long-term liabilities fill in the blank 8
9. Ratio of liabilities to stockholders' equity fill in the blank 9
10. Times interest earned fill in the blank 10
11. Asset turnover fill in the blank 11
12. Return on total assets fill in the blank 12 %
13. Return on stockholders equity fill in the blank 13 %
14. Return on common stockholders equity fill in the blank 14 %
15. Earnings per share on common stock $fill in the blank 15
16. Price-earnings ratio fill in the blank 16
17. Dividends per share of common stock $fill in the blank 17
18. Dividend yield

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Question

3. List ways to manage relationship dynamics

Answered: 1 week ago