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 | $3,692,000.00 | $3,262,000.00 |
3 | Net income | 610,000.00 | 540,000.00 |
4 | Total | $4,302,000.00 | $3,802,000.00 |
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 | $4,192,000.00 | $3,692,000.00 |
Marshall Inc. |
Comparative Income Statement |
For the Years Ended December 31, 20Y2 and 20Y1 |
1 |
| 20Y2 | 20Y1 |
2 | Sales | $10,860,000.00 | $10,000,000.00 |
3 | Cost of goods sold | 6,000,000.00 | 5,460,000.00 |
4 | Gross profit | $4,860,000.00 | $4,540,000.00 |
5 | Selling expenses | $2,160,000.00 | $2,000,000.00 |
6 | Administrative expenses | 1,627,500.00 | 1,500,000.00 |
7 | Total operating expenses | $3,787,500.00 | $3,500,000.00 |
8 | Income from operations | $1,072,500.00 | $1,040,000.00 |
9 | Other revenue | 99,500.00 | 20,000.00 |
10 |
| $1,172,000.00 | $1,060,000.00 |
11 | Other expense (interest) | 132,000.00 | 120,000.00 |
12 | Income before income tax | $1,040,000.00 | $940,000.00 |
13 | Income tax expense | 430,000.00 | 400,000.00 |
14 | Net income | $610,000.00 | $540,000.00 |
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 | 430,000.00 | 380,000.00 |
8 | Prepaid expenses | 109,000.00 | 20,000.00 |
9 | Total current assets | $2,474,000.00 | $2,270,000.00 |
10 | Long-term investments | 800,000.00 | 800,000.00 |
11 | Property, plant, and equipment (net) | 5,750,000.00 | 5,184,000.00 |
12 | Total assets | $9,024,000.00 | $8,254,000.00 |
13 | Liabilities |
|
|
14 | Current liabilities | $882,000.00 | $812,000.00 |
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 | $4,082,000.00 | $3,812,000.00 |
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 | 4,192,000.00 | 3,692,000.00 |
24 | Total stockholders equity | $4,942,000.00 | $4,442,000.00 |
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): 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 | % |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started