Question
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $82.40 on December 31, 20Y2. Question not
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $82.40 on December 31, 20Y2.
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Marshall Inc. |
Comparative Retained Earnings Statement |
For the Years Ended December 31, 20Y2 and 20Y1 |
1 | 20Y2 | 20Y1 | |
2 | Retained earnings, January 1 | $3,712,000.00 | $3,262,000.00 |
3 | Net income | 631,000.00 | 560,000.00 |
4 | Total | $4,343,000.00 | $3,822,000.00 |
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 | $4,233,000.00 | $3,712,000.00 |
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 | 5,440,000.00 |
4 | Gross profit | $4,860,000.00 | $4,560,000.00 |
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 | $1,060,000.00 |
9 | Other income | 99,500.00 | 20,000.00 |
10 | $1,172,000.00 | $1,080,000.00 | |
11 | Other expense (interest) | 131,000.00 | 120,000.00 |
12 | Income before income tax | $1,041,000.00 | $960,000.00 |
13 | Income tax expense | 410,000.00 | 400,000.00 |
14 | Net income | $631,000.00 | $560,000.00 |
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) | 586,000.00 | 500,000.00 |
7 | Inventories | 410,000.00 | 380,000.00 |
8 | Prepaid expenses | 107,000.00 | 20,000.00 |
9 | Total current assets | $2,454,000.00 | $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 | $9,004,000.00 | $8,254,000.00 |
13 | Liabilities | ||
14 | Current liabilities | $821,000.00 | $792,000.00 |
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 | $4,021,000.00 | $3,792,000.00 |
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 | 4,233,000.00 | 3,712,000.00 |
24 | Total stockholders equity | $4,983,000.00 | $4,462,000.00 |
25 | Total liabilities and stockholders equity | $9,004,000.00 | $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 |
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