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

Instructions

Determine the following measures for 20Y2, rounding to one decimal place including percentages, except for per-share amounts:

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

Transcribed Image Text:

Stargel Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 5,375,000 $545,000 925,000 900,000 6275000 $5470000 Dividends: 45,000 50,000 $95,000 95,000 $6,180,000 $5375,000 $ 45,000 50,000 Stargel Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales... . Cost of goods sold. $10,000,000 $9,400,000 4,950,000 $ 4,650,000 $4,450,000 $ 2,000,000 1,880,000 1,410,000 3,500,000 $3,290,000 $ 1,150,000 $1,160,000 140,000 1,300,000 1,300,000 150,000 $ 1,130,000 $1,150,000 225,000 $ 900,000 925,000 . . . . . . . Selling expenses . . . . . . Other revenue Other expense (interest).... Income tax expense 150,000 170,000 . . . 230,000 . . . Stargel Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 20Y2 20Y1 Assets Current assets: Cash 500,000 400,000 1,010,000 ,000,000 510,000 950,000 229,000 $3,690,000 3,089,000 2,350,000 2,300,000 3,740,000 3,366,000 $9,780,000 $8,755,000 Inventories... Prepaid expenses 740,000 1,190,000 250,000 Total assets.... Liabilitles Current liabilities Long-term liabilities: $ 900,000 $ 880,000 $ 200,000 $ 0 Bonds payable, 1096 . 1500,000 1500,000 $1,500,000 $2,600,000 $2,380,000 Total long-term liabilities . . . . . . . . . . Total liabilities. Stockholders'Equity $ 500,000 500,000 500,000 6,180,000 5,375,000 $7,180,000 $6,375,000 $9,780,000 $8,755,000 Common stock, $5 par... Retained earnings 500,000 . Total liabilities and stockholders' equity...