Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Retained earnings, January 1 $3,910,550 $3,323,050 Net income 852,000 680,600 Total $4,762,550 $4,003,650 Dividends: On preferred stock $11,200 $11,200 On common stock 81,900 81,900 Total dividends $93,100 $93,100 Retained earnings, December 31 $4,669,450 $3,910,550 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales $5,721,375 $5,271,400 Cost of goods sold 2,124,300 1,954,360 Gross profit $3,597,075 $3,317,040 Selling expenses $1,228,220 $1,493,630 Administrative expenses 1,046,265 877,210 Total operating expenses $2,274,485 $2,370,840 Income from operations $1,322,590 $946,200 Other revenue 69,610 60,400 $1,392,200 $1,006,600 Other expense (interest) 424,000 233,600 Income before income tax $968,200 $773,000 Income tax expense 116,200 92,400 Net income $852,000 $680,600 Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 20Y2 20Y1 Assets Current assets Cash $1,466,330 $780,090 Marketable securities 2,219,300 1,292,730 Accounts receivable (net) 1,073,100 1,007,400 Inventories 803,000 613,200 Prepaid expenses 277,413 156,020 Total current assets $5,839,143 $3,849,440 Long-term investments 1,727,702 292,429 Property, plant, and equipment (net) 5,830,000 5,247,000 Total assets $13,396,845 $9,388,869 Liabilities Current liabilities $1,717,395 $848,319 Long-term liabilities: Mortgage note payable, 8% $2,380,000 $0 Bonds payable, 8% 2,920,000 2,920,000 Total long-term liabilities $5,300,000 $2,920,000 Total liabilities $7,017,395 $3,768,319 Stockholders' Equity Preferred $0.70 stock, $50 par $800,000 $800,000 Common stock, $10 par 910,000 910,000 Retained earnings 4,669,450 3,910,550 Total stockholders' equity $6,379,450 $5,620,550 Total liabilities and stockholders' equity $13,396,845 $9,388,869 Required: Determine the following measures for 20Y2, 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.

Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Retained earnings, January 1 $3,910,550 $3,323,050 Net income 852,000 680,600 Total $4,762,550 $4,003,650 Dividends: On preferred stock $11,200 $11,200 On common stock 81,900 81,900 Total dividends $93,100 $93,100 Retained earnings, December 31 $4,669,450 $3,910,550 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales $5,721,375 $5,271,400 Cost of goods sold 2,124,300 1,954,360 Gross profit $3,597,075 $3,317,040 Selling expenses $1,228,220 $1,493,630 Administrative expenses 1,046,265 877,210 Total operating expenses $2,274,485 $2,370,840 Income from operations $1,322,590 $946,200 Other revenue 69,610 60,400 $1,392,200 $1,006,600 Other expense (interest) 424,000 233,600 Income before income tax $968,200 $773,000 Income tax expense 116,200 92,400 Net income $852,000 $680,600 Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 20Y2 20Y1 Assets Current assets Cash $1,466,330 $780,090 Marketable securities 2,219,300 1,292,730 Accounts receivable (net) 1,073,100 1,007,400 Inventories 803,000 613,200 Prepaid expenses 277,413 156,020 Total current assets $5,839,143 $3,849,440 Long-term investments 1,727,702 292,429 Property, plant, and equipment (net) 5,830,000 5,247,000 Total assets $13,396,845 $9,388,869 Liabilities Current liabilities $1,717,395 $848,319 Long-term liabilities: Mortgage note payable, 8% $2,380,000 $0 Bonds payable, 8% 2,920,000 2,920,000 Total long-term liabilities $5,300,000 $2,920,000 Total liabilities $7,017,395 $3,768,319 Stockholders' Equity Preferred $0.70 stock, $50 par $800,000 $800,000 Common stock, $10 par 910,000 910,000 Retained earnings 4,669,450 3,910,550 Total stockholders' equity $6,379,450 $5,620,550 Total liabilities and stockholders' equity $13,396,845 $9,388,869 Required: Determine the following measures for 20Y2, 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.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 4PB

See similar textbooks

Related questions

Question

Marshall Inc.
Comparative Retained Earnings Statement
For the Years Ended December 31, 20Y2 and 20Y1
	20Y2	20Y1
Retained earnings, January 1	$3,910,550		$3,323,050
Net income	852,000		680,600
Total	$4,762,550		$4,003,650
Dividends:
	On preferred stock	$11,200		$11,200
	On common stock	81,900		81,900
		Total dividends	$93,100		$93,100
Retained earnings, December 31	$4,669,450		$3,910,550

Marshall Inc.
Comparative Income Statement
For the Years Ended December 31, 20Y2 and 20Y1
	20Y2	20Y1
Sales	$5,721,375		$5,271,400
Cost of goods sold	2,124,300		1,954,360
Gross profit	$3,597,075		$3,317,040
Selling expenses	$1,228,220		$1,493,630
Administrative expenses	1,046,265		877,210
Total operating expenses	$2,274,485		$2,370,840
Income from operations	$1,322,590		$946,200
Other revenue	69,610		60,400
	$1,392,200		$1,006,600
Other expense (interest)	424,000		233,600
Income before income tax	$968,200		$773,000
Income tax expense	116,200		92,400
Net income	$852,000		$680,600

Marshall Inc.
Comparative Balance Sheet
December 31, 20Y2 and 20Y1
	20Y2	20Y1
Assets
Current assets
	Cash	$1,466,330		$780,090
	Marketable securities	2,219,300		1,292,730
	Accounts receivable (net)	1,073,100		1,007,400
	Inventories	803,000		613,200
	Prepaid expenses	277,413		156,020
		Total current assets	$5,839,143		$3,849,440
Long-term investments	1,727,702		292,429
Property, plant, and equipment (net)	5,830,000		5,247,000
Total assets	$13,396,845		$9,388,869
Liabilities
Current liabilities	$1,717,395		$848,319
Long-term liabilities:
	Mortgage note payable, 8%	$2,380,000		$0
	Bonds payable, 8%	2,920,000		2,920,000
		Total long-term liabilities	$5,300,000		$2,920,000
Total liabilities	$7,017,395		$3,768,319
Stockholders' Equity
Preferred $0.70 stock, $50 par	$800,000		$800,000
Common stock, $10 par	910,000		910,000
Retained earnings	4,669,450		3,910,550
Total stockholders' equity	$6,379,450		$5,620,550
Total liabilities and stockholders' equity	$13,396,845		$9,388,869

Required:

Determine the following measures for 20Y2, 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
0%
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
%
%24

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.