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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.

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 %

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