Question
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall Inc. common stock was $ 67 on December 31, 20Y2.
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall Inc. common stock was $ 67 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 $ 3,892,550 $ 3,308,050 Net income 888,000 677,600 Total $ 4,780,550 $ 3,985,650 Dividends On preferred stock $ 11,200 $ 11,200 On common stock 81,900 81,900 Total dividends $ 93,100 $ 93,100 Retained earnings, December 31 $ 4,687,450 $ 3,892,550 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales $ 5,165,480 $ 4,759,210 Cost of goods sold 1,696,520 1,560,800 Gross profit $ 3,468,960 $ 3,198,410 Selling expenses $ 1,195,520 $ 1,457,150 Administrative expenses 1,018,400 855,780 Total operating expenses 2,213,920 2,312,930 Income from operations $ 1,255,040 $ 885,480 Other income 66,060 56,520 $ 1,321,100 $ 942,000 Other expense (interest) 312,000 172,000 Income before income tax $ 1,009,100 $ 770,000 Income tax expense 121,100 92,400 Net income $ 888,000 $ 677,600 Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 Dec. 31, 20Y2 Dec. 31, 20Y1 Assets Current assets Cash $ 712,650 $ 909,880 Marketable securities 1,078,610 1,507,790 Accounts receivable (net) 919,800 861,400 Inventories 686,200 525,600 Prepaid expenses 134,824 181,980 Total current assets $ 3,532,084 $ 3,986,650 Long-term investments 3,693,326 1,875,878 Property, plant, and equipment (net) 4,290,000 3,861,000 Total assets $ 11,515,410 $ 9,723,528 Liabilities Current liabilities $ 1,217,960 $ 1,970,978 Long-term liabilities Mortgage note payable, 8 % $ 1,750,000 $ 0 Bonds payable, 8 % 2,150,000 2,150,000 Total long-term liabilities $ 3,900,000 $ 2,150,000 Total liabilities $ 5,117,960 $ 4,120,978 Stockholders' Equity Preferred $ 0.70 stock, $ 50 par $ 800,000 $ 800,000 Common stock, $ 10 par 910,000 910,000 Retained earnings 4,687,450 3,892,550 Total stockholders' equity $ 6,397,450 $ 5,602,550 Total liabilities and stockholders' equity $ 11,515,410 $ 9,723,528 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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