Answered step by step
Verified Expert Solution
Question
1 Approved Answer
This is ONE question. Please see ALL 5 photos. Measures of liquidity, Solvency and Profitability The comparative financial statements of Marshall Inc. are as follows.
This is ONE question. Please see ALL 5 photos.
Measures of liquidity, Solvency and Profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall Inc. common stock was $ 62 on December 31, 2012 Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 2011 Retained earnings, January 1 $ 2,207,700 $ 1,858,800 Net income 496,400 380,700 $ 2,239,500 Total $ 2,704,100 Dividends On preferred stock $ 6,300 $ 6,300 On common stock 25,500 Total dividends 25,500 $ 31,800 $ 2,672,300 $ 31,800 Retained earnings, December 31 $ 2,207,700 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales $ 2,777,800 Cost of goods sold $ 3,014,900 1,051,200 $ 1,963,700 967,100 Gross profit $ 1,810,700 $ 826,990 Selling expenses Administrative expenses $ 680,730 579,880 485,700 Total operating expenses 1,260,610 1,312,690 Income from operations $ 703,090 $ 498,010 Other income 37,010 31,790 $ 740,100 $ 529,800 176,000 96,800 Other expense interest) Income before income tax Income tax expense $ 564,100 $ 433,000 67,700 52,300 Net income $ 496,400 $ 380,700 Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 2041 Dec. 31, 20Y2 Dec. 31, 20Y1 Assets Current assets Cash $ 547,620 $ 519,270 860,520 Marketable securities Accounts receivable (net) 828,830 525,600 394,200 103,606 496,400 306,600 Inventories Prepaid expenses 103,850 Total current assets $ 2,399,856 $ 2,286,640 1,278,284 716,535 Long-term investments Property, plant, and equipment (net) 2,860,000 2,574,000 $ 5,577,175 Total assets $ 6,538,140 Liabilities Current liabilities $ 705,840 $ 1,199,475 Long-term liabilities $ 0 Mortgage note payable, 8 % Bonds payable, 8 % $ 990,000 1,210,000 Total long-term liabilities $ 2,200,000 $ 2,905,840 1,210,000 $ 1,210,000 $ 2,409,475 Total liabilities Liabilities Current liabilities $ 705,840 $ 1,199,475 $ 990,000 $ 0 Long-term liabilities Mortgage note payable, 8 % Bonds payable, 8 % Total long-term liabilities 1,210,000 1,210,000 $ 2,200,000 $ 1,210,000 Total liabilities $ 2,905,840 $ 2,409,475 Stockholders' Equity Preferred $ 0.70 stock, $ 50 par $ 450,000 510,000 Common stock, $ 10 par Retained earnings $ 450,000 510,000 2,672,300 $ 3,632,300 $ 6,538,140 2,207,700 Total stockholders' equity $ 3,167,700 Total liabilities and stockholders' equity $ 5,577,175 Required: Required: 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. 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 Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started