Question
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall Inc. common stock was $ 62 on December 31, 20Y2.
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall Inc. common stock was $ 62 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 $ 1,652,575 $ 1,392,225 Net income 379,600 285,100 Total $ 2,032,175 $ 1,677,325 Dividends On preferred stock $ 6,300 $ 6,300 On common stock 18,450 18,450 Total dividends $ 24,750 $ 24,750 Retained earnings, December 31 $ 2,007,425 $ 1,652,575 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales $ 2,433,455 $ 2,242,090 Cost of goods sold 854,100 785,770 Gross profit $ 1,579,355 $ 1,456,320 Selling expenses $ 553,570 $ 675,860 Administrative expenses 471,555 396,940 Total operating expenses 1,025,125 1,072,800 Income from operations $ 554,230 $ 383,520 Other income 29,170 24,480 $ 583,400 $ 408,000 Other expense (interest) 152,000 84,000 Income before income tax $ 431,400 $ 324,000 Income tax expense 51,800 38,900 Net income $ 379,600 $ 285,100 Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 Dec. 31, 20Y2 Dec. 31, 20Y1 Assets Current assets Cash $ 390,150 $ 353,670 Marketable securities 590,490 586,080 Accounts receivable (net) 423,400 401,500 Inventories 321,200 248,200 Prepaid expenses 73,809 70,730 Total current assets $ 1,799,049 $ 1,660,180 Long-term investments 1,388,059 508,028 Property, plant, and equipment (net) 2,090,000 1,881,000 Total assets $ 5,277,108 $ 4,049,208 Liabilities Current liabilities $ 599,683 $ 576,633 Long-term liabilities Mortgage note payable, 8 % $ 850,000 $ 0 Bonds payable, 8 % 1,050,000 1,050,000 Total long-term liabilities $ 1,900,000 $ 1,050,000 Total liabilities $ 2,499,683 $ 1,626,633 Stockholders' Equity Preferred $ 0.70 stock, $ 40 par $ 360,000 $ 360,000 Common stock, $ 10 par 410,000 410,000 Retained earnings 2,007,425 1,652,575 Total stockholders' equity $ 2,777,425 $ 2,422,575 Total liabilities and stockholders' equity $ 5,277,108 $ 4,049,208 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 $ 1,199,366 2. Current ratio 3 3. Quick ratio 2.3 4. Accounts receivable turnover 5.9 5. Number of days' sales in receivables 61.9 days 6. Inventory turnover 3 7. Number of days' sales in inventory 121.7 days 8. Ratio of fixed assets to long-term liabilities 1.1 9. Ratio of liabilities to stockholders' equity 0.9 10. Times interest earned 3.8 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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