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The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 63 on December 31, 20Y2. Marshall
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 63 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 $3,113,250 $2,647,850 Net income 710,400 542,300 Dividends: On preferred stock (11,200) (11,200) On common stock (65,700) (65,700) Retained earnings, December 31 $3,746,750 $3,113,250 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales $4,175,600 $3,847,230 Cost of merchandise sold 1,451,240 1,335,140 Gross profit $2,724,360 $2,512,090 Selling expenses $913,370 $1,126,380 Administrative expenses 778,060 661,530 Total operating expenses $1,691,430 $1,787,910 Income from operations $1,032,930 $724,180 Other revenue and expense: Other revenue 54,370 46,220 Other expense (interest) (280,000) (154,400) Income before income tax expense $807,300 $616,000 Income tax expense 96,900 73,700 Net income $710,400 $542,300 Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 20Y2 20Y1 Assets Current assets: Cash $721,550 $749,220 Marketable securities 1,092,070 1,241,560 Accounts receivable (net) 781,100 737,300 Inventories 584,000 452,600 Prepaid expenses 136,505 149,840 Total current assets $3,315,225 $3,330,520 Long-term investments 1,856,600 697,700 Property, plant, and equipment (net) 4,550,000 4,095,000 Total assets $9,721,825 $8,123,220 Liabilities Current liabilities $1,105,075 $1,709,970 Long-term liabilities: Mortgage note payable, 8% $1,570,000 $0 Bonds payable, 8% 1,930,000 1,930,000 Total long-term liabilities $3,500,000 $1,930,000 Total liabilities $4,605,075 $3,639,970 Stockholders' Equity Preferred $0.70 stock, $40 par $640,000 $640,000 Common stock, $10 par 730,000 730,000 Retained earnings 3,746,750 3,113,250 Total stockholders' equity $5,116,750 $4,483,250 Total liabilities and stockholders' equity $9,721,825 $8,123,220 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 2,210,150 2. Current ratio 3 3. Quick ratio 2.3 4. Accounts receivable turnover 5.5 5. Number of days' sales in receivables 66.4 days 6. Inventory turnover 2.8 7. Number of days' sales in inventory 130.4 days 8. Ratio of fixed assets to long-term liabilities 1.3 9. Ratio of liabilities to stockholders' equity 0.9 10. Times interest earned 3.9 11. Asset turnover 0.5 12. Return on total assets ? % 13. Return on stockholders equity ? % 14. Return on common stockholders equity ? 15. Earnings per share on common stock 9.58 16. Price-earnings ratio ? 17. Dividends per share of common stock 0.9 18. Dividend yield ? 0.09 %
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