The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $82.60 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	$3,704,000.00	$3,264,000.00
3	Net income	600,000.00	550,000.00
4	Total	$4,304,000.00	$3,814,000.00
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	$4,194,000.00	$3,704,000.00

Marshall Inc.

Comparative Income Statement

For the Years Ended December 31, 20Y2 and 20Y1

1		20Y2	20Y1
2	Sales	$10,850,000.00	$10,000,000.00
3	Cost of goods sold	6,000,000.00	5,450,000.00
4	Gross profit	$4,850,000.00	$4,550,000.00
5	Selling expenses	$2,170,000.00	$2,000,000.00
6	Administrative expenses	1,627,500.00	1,500,000.00
7	Total operating expenses	$3,797,500.00	$3,500,000.00
8	Income from operations	$1,052,500.00	$1,050,000.00
9	Other income	99,500.00	20,000.00
10		$1,152,000.00	$1,070,000.00
11	Other expense (interest)	132,000.00	120,000.00
12	Income before income tax	$1,020,000.00	$950,000.00
13	Income tax expense	420,000.00	400,000.00
14	Net income	$600,000.00	$550,000.00

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)	585,000.00	500,000.00
7	Inventories	420,000.00	380,000.00
8	Prepaid expenses	108,000.00	20,000.00
9	Total current assets	$2,464,000.00	$2,270,000.00
10	Long-term investments	800,000.00	800,000.00
11	Property, plant, and equipment (net)	5,760,000.00	5,184,000.00
12	Total assets	$9,024,000.00	$8,254,000.00
13	Liabilities
14	Current liabilities	$880,000.00	$800,000.00
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	$4,080,000.00	$3,800,000.00
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	4,194,000.00	3,704,000.00
24	Total stockholders equity	$4,944,000.00	$4,454,000.00
25	Total liabilities and stockholders equity	$9,024,000.00	$8,254,000.00

Determine the following measures for 20Y2 (round to one decimal place, including percentages, except for per-share amounts):

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	%

Points:

9 / 18

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1.	Subtract current liabilities from current assets.
2.	Divide current assets by current liabilities.
3.	Divide quick assets by current liabilities. Quick assets are cash, temporary investments, and receivables.
4.	Divide sales by average accounts receivable. Average Accounts receivable = (Beginning Net Accounts Receivable + Ending Net Accounts Receivable) 2.
5.	Divide average accounts receivable by average daily sales. Average Accounts receivable = (Beginning Net Accounts Receivable + Ending Net Accounts Receivable) 2. Average daily sales are sales divided by 365 days.
6.	Divide cost of goods sold by average inventory. Average Inventory = (Beginning Inventories + Ending Inventories) 2.
7.	Divide average inventory by average daily cost of goods sold. Average Inventory = (Beginning Inventories + Ending Inventories) 2. Average daily cost of goods sold are cost of goods sold divided by 365 days.
8.	Divide property, plant and equipment (net) by long-term liabilities.
9.	Divide total liabilities by total stockholders' equity.
10.	Divide the sum of income before income tax plus interest expense by interest expense.
11.	Divide sales by average total assets, excluding long-term investments. Average total assets = (Beginning total assets + Ending total assets) 2.
12.	Divide the sum of net income plus interest expense by average total assets. Average total assets = (Beginning total assets + Ending total assets) 2.
13.	Divide net income by average total stockholders' equity. Average total stockholders' equity = (Beginning total stockholders' equity + Ending total stockholders' equity) 2.
14.	Divide net income minus preferred dividends from the retained earnings statement by average common stockholders' equity. Common stockholders' equity = Common stock + Retained earnings. Average common stockholders' equity = (Beginning common stockholders' equity + Ending common stockholders' equity) 2.
15.	Divide net income minus preferred dividends from the retained earnings statement by common shares outstanding (common stock par value).
16.	Divide common market share price by common earnings per share (use answer from requirement 15).
17.	Divide common dividends (from Retained Earnings Statement) by common shares outstanding (common stock par value).
18.	Divide common dividends per share (use answer from requirement 17) by market share price.