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 StatementFor the Years Ended December 31, 20Y2 and 20Y120Y220Y1Retained earnings, January 1$875,725$746,975Net income212,800153,000Dividends:On preferred stock(7,000)(7,000)On common stock(17,250)(17,250)Retained earnings, December 31$1,064,275$875,725
Marshall Inc.Comparative Income StatementFor the Years Ended December 31, 20Y2 and 20Y120Y220Y1Sales$1,248,300$1,150,140Cost of merchandise sold444,570409,000Gross profit$803,730$741,140Selling expenses$268,930$337,820Administrative expenses229,090198,400Total operating expenses$498,020$536,220Income from operations$305,710$204,920Other revenue and expense:Other revenue16,09013,080Other expense (interest)(80,000)(44,000)Income before income tax expense$241,800$174,000Income tax expense29,00021,000Net income$212,800$153,000
Marshall Inc.Comparative Balance SheetDecember 31, 20Y2 and 20Y120Y220Y1AssetsCurrent assets:Cash$272,500$216,160Marketable securities412,440358,210Accounts receivable (net)226,300211,700Inventories175,200131,400Prepaid expenses51,55843,230Total current assets$1,137,998$960,700Long-term investments501,125302,478Property, plant, and equipment (net)1,200,0001,080,000Total assets$2,839,123$2,343,178LiabilitiesCurrent liabilities$344,848$487,453Long-term liabilities:Mortgage note payable, 8%$450,000$0Bonds payable, 8%550,000550,000Total long-term liabilities$1,000,000$550,000Total liabilities$1,344,848$1,037,453Stockholders' EquityPreferred $0.70 stock, $20 par$200,000$200,000Common stock, $10 par230,000230,000Retained earnings1,064,275875,725Total stockholders' equity$1,494,275$1,305,725Total liabilities and stockholders' equity$2,839,123$2,343,178
Required:
Determine the following measures for 20Y2,rounding to one decimal place, except for dollar amounts, which should be rounded to the nearest cent. Use the rounded answer of the requirement for subsequent requirement, if required.Assume 365 days a year.
1.Working capital$
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 shareof common stock
18.Dividend yield
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