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The comparative financial statements of Stargel Inc. are as follows. The market price of Stargel common stock was $119.70 on December 31, 20Y2. Stargel Inc.Comparative

The comparative financial statements of Stargel Inc. are as follows. The market price of Stargel common stock was $119.70 on December 31, 20Y2.

Stargel Inc.Comparative Retained Earnings StatementFor the Years Ended December 31, 20Y2 and 20Y1

20Y2 20Y1

Retained earnings, January 1 $5,375,000 $4,545,000

Net income $900,000 $925,000

Total $6,275,000 $5,470,000

Dividends:

Preferred stock dividends $45,000 $45,000

Common stock dividends $50,000 $50,000

Total dividends $95,000 $95,000

Retained earnings, December 31 $6,180,000 $5,375,000

Stargel Inc.Comparative Income StatementFor the Years Ended December 31, 20Y2 and 20Y1

20Y2 20Y1

Sales $10,000,000 $9,400,000

Cost of goods sold $5,350,000 $4,950,000

Gross profit $4,650,000 $4,450,000

Selling expenses $2,000,000 $1,880,000

Administrative expenses $1,500,000 $1,410,000

Total operating expenses $3,500,000 $3,290,000

Income from operations $1,150,000 $1,160,000

Other revenue $150,000 $140,000

$1,300,000 $1,300,000

Other expense (interest) $170,000 $150,000

Income before income tax $1,130,000 $1,150,000

Income tax expense $230,000 $225,000

Net income $900,000 $925,000

Stargel Inc.Comparative Balance SheetDecember 31, 20Y2 and 20Y1

20Y2 20Y1

Assets

Current assets:

Cash $500,000 $400,000

Marketable securities $1,010,000 $1,000,000

Accounts receivable (net) $740,000 $510,000

Inventories $1,190,000 $950,000

Prepaid expenses $250,000 $229,000

Total current assets $3,690,000 $3,089,000

Long-term investments $2,350,000 $2,300,000

Property, plant, and equipment (net) $3,740,000 $3,366,000

Total assets $9,780,000 $8,755,000

Liabilities

Current liabilities $900,000 $880,000

Long-term liabilities:

Mortgage note payable, 10%. $200,000 $0

Bonds payable, 10% $1,500,000 $1,500,000

Total long-term liabilities $1,700,000 $1,500,000

Total liabilities $2,600,000 $2,380,000

Stockholders' Equity

Preferred $0.90 stock, $10 par $500,000 $500,000

Common stock, $5 par $500,000 $500,000

Retained earnings $6,180,000 $5,375,000

Total stockholders' equity $7,180,000 $6,375,000

Total liabilities and stockholders' equity $9,780,000 $8,755,000

Determine the following measures for 20Y2, rounding to one decimal place, except 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 shareof common stock $

18.Dividend yield %

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