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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 Statement | ||||||
For the Years Ended December 31, 20Y2 and 20Y1 | ||||||
20Y2 | 20Y1 | |||||
Retained earnings, January 1 | $ 4,159,100 | $ 3,518,300 | ||||
Net income | 921,600 | 720,600 | ||||
Total | $5,080,700 | $ 4,238,900 | ||||
Dividends: | ||||||
On preferred stock | $ 11,900 | $ 11,900 | ||||
On common stock | 67,900 | 67,900 | ||||
Total dividends | $ 79,800 | $ 79,800 | ||||
Retained earnings, December 31 | $ 5,000,900 | $ 4,159,100 |
Marshall Inc. | ||||
Comparative Income Statement | ||||
For the Years Ended December 31, 20Y2 and 20Y1 | ||||
20Y2 | 20Y1 | |||
Sales | $ 5,450,910 | $ 5,022,190 | ||
Cost of goods sold | 1,949,100 | 1,793,170 | ||
Gross profit | $ 3,501,810 | $ 3,229,020 | ||
Selling expenses | $ 1,185,450 | $ 1,442,200 | ||
Administrative expenses | 1,009,830 | 847,010 | ||
Total operating expenses | $2,195,280 | $2,289,210 | ||
Income from operations | $ 1,306,530 | $ 939,810 | ||
Other revenue | 68,770 | 59,990 | ||
$ 1,375,300 | $ 999,800 | |||
Other expense (interest) | 328,000 | 180,800 | ||
Income before income tax | $ 1,047,300 | $ 819,000 | ||
Income tax expense | 125,700 | 98,400 | ||
Net income | $ 921,600 | $ 720,600 |
Marshall Inc. | |||||||
Comparative Balance Sheet | |||||||
December 31, 20Y2 and 20Y1 | |||||||
20Y2 | 20Y1 | ||||||
Assets | |||||||
Current assets | |||||||
Cash | $ 921,420 | $ 974,710 | |||||
Marketable securities | 1,394,590 | 1,615,230 | |||||
Accounts receivable (net) | 985,500 | 927,100 | |||||
Inventories | 730,000 | 569,400 | |||||
Prepaid expenses | 174,322 | 194,940 | |||||
Total current assets | $ 4,205,832 | $ 4,281,380 | |||||
Long-term investments | 3,151,788 | 1,733,000 | |||||
Property, plant, and equipment (net) | 4,920,000 | 4,428,000 | |||||
Total assets | $ 12,277,620 | $ 10,442,380 | |||||
Liabilities | |||||||
Current liabilities | $ 1,356,720 | $ 2,203,280 | |||||
Long-term liabilities: | |||||||
Mortgage note payable, 8% | $ 1,840,000 | $ 0 | |||||
Bonds payable, 8% | 2,260,000 | 2,260,000 | |||||
Total long-term liabilities | $ 4,100,000 | $ 2,260,000 | |||||
Total liabilities | $ 5,456,720 | $ 4,463,280 | |||||
Stockholders' Equity | |||||||
Preferred $0.70 stock, $50 par | $ 850,000 | $ 850,000 | |||||
Common stock, $10 par | 970,000 | 970,000 | |||||
Retained earnings | 5,000,900 | 4,159,100 | |||||
Total stockholders' equity | $ 6,820,900 | $ 5,979,100 | |||||
Total liabilities and stockholders' equity | $ 12,277,620 | $ 10,442,380 |
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 share of common stock | $ | |
18. Dividend yield | % |
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