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The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall Inc.'s common stock was $57 on December 31, 20Y2. Marshall
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall Inc.'s common stock was $57 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 | $1,662,900 | $1,409,300 |
Net income | 369,200 | 288,600 |
Total | $1,962,100 | $1,697,900 |
Dividends | ||
On preferred stock | $6,300 | $6,300 |
On common stock | 28,700 | 28,700 |
Total dividends | $ 35,000 | $35,000 |
Retained earnings, December 31 | $1,997,100 | $1,662,900 |
Marshall Inc. | ||
Comparative Income Statement | ||
For the Years Ended December 31, 20Y2 and 20Y1 |
20Y2 | 20Y1 | |
---|---|---|
Sales | $2,108,970 | $1,943,050 |
Cost of goods sold | 792,050 | 728,690 |
Gross profit | $ 1,316,920 | $1,214,360 |
Selling expenses | $426,170 | $526,270 |
Administrative expenses | 363,030 | 309,080 |
Total operating expenses | 789,200 | 835,350 |
Income from operations | $527,720 | $379,010 |
Other income | 27,780 | 24,190 |
$555,500 | $403,200 | |
Other expense (interest) | 136,000 | 75,200 |
Income before income tax | $419,500 | $328,000 |
Income tax expense | 50,300 | 39,400 |
Net income | $369,200 | $288,600 |
Marshall Inc. | ||
Comparative Balance Sheet | ||
December 31, 20Y2 and 20Y1 |
Dec. 31, 20Y2 | Dec. 31, 20Y1 | |
---|---|---|
Assets | ||
Current assets | ||
Cash | $313,590 | $358,870 |
Marketable securities | 474,620 | 594,690 |
Accounts receivable (net) | 401,500 | 379,600 |
Inventories | 292,000 | 219,000 |
Prepaid expenses | 59,330 | 71,770 |
Total current assets | $ 1,541,040 | $1,623,930 |
Long-term investments | 1,569,740 | 653,883 |
Property, plant, and equipment (net) | 1,870,000 | 1,683,000 |
Total assets | $4,980,780 | $3,960,813 |
Liabilities | ||
Current liabilities | $513,680 | $587,913 |
Long-term liabilities | ||
Mortgage note payable, 8 % | $760,000 | $0 |
Bonds payable, 8 % | 940,000 | 940,000 |
Total long-term liabilities | $1,700,000 | $940,000 |
Total liabilities | $2,213,680 | $1,527,913 |
Stockholders' Equity | ||
Preferred $0.70 stock, $40 par | $360,000 | $360,000 |
Common stock, $10 par | 410,000 | 410,000 |
Retained earnings | 1,997,100 | 1,662,900 |
Total stockholders' equity | $2,767,100 | $2,432,900 |
Total liabilities and stockholders' equity | $4,980,780 | $3,960,813 |
Required:
Determine the following measures for 20Y2, rounding to one decimal place, except for dollar amounts.
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. | The ratio of fixed assets to long-term liabilities | _____ |
9. | The 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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To calculate the measures for 20Y2 we can use the following formulas 1 Working capital Current assets Current liabilities 1 Current ratio Current assets Current liabilities 1 Quick ratio Current asset...Get Instant Access to Expert-Tailored Solutions
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