The table that foliows shows the stock price, eamings per share, and dividends per share for three companies for a recent year: Earnings Dividends Price per Share per Share Jones Co $37.80 $1.20 $1.21 Smith Co. 259.72 4.30 5.19 Tucker Co. 62.58 4,20 2.25 a. Determine the price-earnings ratio and dividend yield for the three companies. Round to one decimal place. If an amount should be zero, enter in "O" Price-Earnings Ratio Dividend Yield Jones Co. Smith Co. Tucker Co. Measures of liquidity, Solvency and Profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall Ine. common stock was $ 64 on December 31, 2012. Marshall Inc Comparative Retained Earnings Statement For the Years Ended December 31, 2012 and 2041 2012 2011 Retained earnings, January 1 $1,550,300 $1,307,800 364,800 267,900 Total $1,915,100 $1,575,700 Dividends On preferred stock $ 5,600 On common stock 19,800 Total dividends $ 25,400 $ 25,400 Retained earnings, December 31 $1,550,300 Net Income $ 5,600 19,800 $ 1,889,700 20Y1 $2,146,930 733,390 $ 1,413,540 $ 655,550 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 2041 2012 Sales $ 2,330,160 Cost of goods sold 797,160 Gross profit $ 1,533,000 Selling expenses $ 529,000 Administrative expenses 450,630 Total operating expenses 979,630 Income from operations $ 553,370 Other Income 29,130 $ 582,500 Other expense (interest) 168,000 Income before income tax $ 414,500 Income tax expense 49,700 385,000 1,040,550 $ 372,990 23,810 $ 396,800 92,800 $ 304,000 36,100 Net Income $ 364,800 $ 267,900 Marshall Inc. Comparative Balance Sheet December 31, 2012 and 2041 Dec 31, 2012 Assets Dec. 31, 2011 Current assets Cash $ 375,830 $ 609,060 921,820 430,700 321,200 115,231 Marketable securities Accounts receivable (net) Inventories Prepaid expenses 622,790 401,500 248,200 75,170 $ 1,723,490 Total current assets 212,140 $ 2,398,011 478,359 2,520,000 $ 5,396,370 Long-term investments Property, plant, and equipment (net) Total assets Liabilities 2,268,000 $ 4,203,630 Current liabilities $ 726,670 $ 813,330 Long-term liabilities $0 Mortgage note payable, 8 % Bonds payable, 8 % 1,160,000 $ 940,000 1,160,000 $ 2,100,000 $ 2,826,670 Total long-term liabilities $ 1,160,000 Total liabilities $ 1,973,330 Stockholders' Equity Preferred $ 0.70 stock, $ 40 par $ 320,000 360,000 Common stock, $ 10 par Retained earnings Total stockholders' equity $ 320,000 360,000 1,889,700 $ 2,569,700 1,550,300 $ 2,230,300 Total liabilities and stockholders' equity $ 5,396,370 $ 4,203,630 Determine the following measures for 2012, 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. Worldng capital 1,671,341 2. Current ratio 3.3 $ 3. Quick ratio 2.7 5.6 days 4. Accounts receivable tumover 5. Number of days' sales in receivables 6. Inventory turnover 7. Number of days' sales in inventory 3. Ratio of fixed assets to long-term abilities 9. Ratio of liabilities to stockholders' equilty 10. Times interest eamed days 11. Asset turnover 12. Return on total assets 13. Retum on stockholders' equity 14. Return on common stockholders' equity 15. Earnings per share on common stock 16. Price-camings ratio 17. Dividends per share of common stock 18. Dividend yield
