Question
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $82.80 on December 31, 20Y2. Marshall Inc.
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $82.80 on December 31, 20Y2. Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 1 20Y2 20Y1 2 Retained earnings, January 1 $3,712,000.00 $3,262,000.00 3 Net income 570,000.00 560,000.00 4 Total $4,282,000.00 $3,822,000.00 5 Dividends: 6 On preferred stock $10,000.00 $10,000.00 7 On common stock 100,000.00 100,000.00 8 Total dividends $110,000.00 $110,000.00 9 Retained earnings, December 31 $4,172,000.00 $3,712,000.00 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 1 20Y2 20Y1 2 Sales $10,840,000.00 $10,000,000.00 3 Cost of goods sold 6,000,000.00 5,440,000.00 4 Gross profit $4,840,000.00 $4,560,000.00 5 Selling expenses $2,180,000.00 $2,000,000.00 6 Administrative expenses 1,627,500.00 1,500,000.00 7 Total operating expenses $3,807,500.00 $3,500,000.00 8 Income from operations $1,032,500.00 $1,060,000.00 9 Other revenue 99,500.00 20,000.00 10 $1,132,000.00 $1,080,000.00 11 Other expense (interest) 132,000.00 120,000.00 12 Income before income tax $1,000,000.00 $960,000.00 13 Income tax expense 430,000.00 400,000.00 14 Net income $570,000.00 $560,000.00 Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 1 20Y2 20Y1 2 Assets 3 Current assets: 4 Cash $1,050,000.00 $950,000.00 5 Marketable securities 301,000.00 420,000.00 6 Accounts receivable (net) 584,000.00 500,000.00 7 Inventories 410,000.00 380,000.00 8 Prepaid expenses 107,000.00 20,000.00 9 Total current assets $2,452,000.00 $2,270,000.00 10 Long-term investments 800,000.00 800,000.00 11 Property, plant, and equipment (net) 5,770,000.00 5,184,000.00 12 Total assets $9,022,000.00 $8,254,000.00 13 Liabilities 14 Current liabilities $900,000.00 $792,000.00 15 Long-term liabilities: 16 Mortgage note payable, 6%, $200,000.00 $0.00 17 Bonds payable, 4%, 3,000,000.00 3,000,000.00 18 Total long-term liabilities $3,200,000.00 $3,000,000.00 19 Total liabilities $4,100,000.00 $3,792,000.00 20 Stockholders Equity 21 Preferred 4% stock, $5 par $250,000.00 $250,000.00 22 Common stock, $5 par 500,000.00 500,000.00 23 Retained earnings 4,172,000.00 3,712,000.00 24 Total stockholders equity $4,922,000.00 $4,462,000.00 25 Total liabilities and stockholders equity $9,022,000.00 $8,254,000.00 Determine the following measures for 20Y2 (round to one decimal place, including percentages, except for per-share amounts): Assume a 365-day year. 1. Working capital 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover 5. Number of days sales in receivables 6. Inventory turnover 7. Number of days sales in inventory 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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