Measures of liquidity, Solvency, and ProfitabilityThe comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 61 on December 31, 20Y2.Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y220Y1Retained earnings, January 1$4,135,050 $3,490,250 Net income960,000 714,900 Total$5,095,050 $4,205,150 Dividends: On preferred stock$11,900 $11,900 On common stock58,200 58,200 Total dividends$70,100 $70,100 Retained earnings, December 31$5,024,950 $4,135,050 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y220Y1Sales$5,259,650 $4,846,000 Cost of goods sold1,905,300 1,752,880 Gross profit$3,354,350 $3,093,120 Selling expenses$1,079,350 $1,358,360 Administrative expenses919,450 797,770 Total operating expenses$1,998,800 $2,156,130 Income from operations$1,355,550 $936,990 Other revenue71,350 59,810 $1,426,900 $996,800 Other expense (interest)336,000 184,800 Income before income tax$1,090,900 $812,000 Income tax expense130,900 97,100 Net income$960,000 $714,900 Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 20Y220Y1Assets Current assets Cash$870,600 $999,790 Marketable securities1,317,660 1,656,780 Accounts receivable (net)985,500 927,100 Inventories744,600 569,400 Prepaid expenses164,712 199,960 Total current assets$4,083,072 $4,353,030 Long-term investments3,617,838 2,106,113 Property, plant, and equipment (net)4,620,000 4,158,000 Total assets$12,320,910 $10,617,143 Liabilities Current liabilities$1,275,960 $2,352,093 Long-term liabilities: Mortgage note payable, 8%$1,890,000 $0 Bonds payable, 8%2,310,000 2,310,000 Total long-term liabilities$4,200,000 $2,310,000 Total liabilities$5,475,960 $4,662,093 Stockholders' Equity Preferred $0.70 stock, $50 par$850,000 $850,000 Common stock, $10 par970,000 970,000 Retained earnings5,024,950 4,135,050 Total stockholders' equity$6,844,950 $5,955,050 Total liabilities and stockholders' equity$12,320,910 $10,617,143 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 days6. Inventory turnover 7. Number of days' sales in inventory days8. 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 %
Measures of liquidity, Solvency, and Profitability
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 61 on December 31, 20Y2.
Marshall Inc.
Comparative
For the Years Ended December 31, 20Y2 and 20Y1
20Y2
20Y1
Retained earnings, January 1
$4,135,050
$3,490,250
Net income
960,000
714,900
Total
$5,095,050
$4,205,150
Dividends:
On
$11,900
$11,900
On common stock
58,200
58,200
Total dividends
$70,100
$70,100
Retained earnings, December 31
$5,024,950
$4,135,050
Marshall Inc.
Comparative Income Statement
For the Years Ended December 31, 20Y2 and 20Y1
20Y2
20Y1
Sales
$5,259,650
$4,846,000
Cost of goods sold
1,905,300
1,752,880
Gross profit
$3,354,350
$3,093,120
Selling expenses
$1,079,350
$1,358,360
Administrative expenses
919,450
797,770
Total operating expenses
$1,998,800
$2,156,130
Income from operations
$1,355,550
$936,990
Other revenue
71,350
59,810
$1,426,900
$996,800
Other expense (interest)
336,000
184,800
Income before income tax
$1,090,900
$812,000
Income tax expense
130,900
97,100
Net income
$960,000
$714,900
Marshall Inc.
Comparative
December 31, 20Y2 and 20Y1
20Y2
20Y1
Assets
Current assets
Cash
$870,600
$999,790
Marketable securities
1,317,660
1,656,780
985,500
927,100
Inventories
744,600
569,400
Prepaid expenses
164,712
199,960
Total current assets
$4,083,072
$4,353,030
Long-term investments
3,617,838
2,106,113
Property, plant, and equipment (net)
4,620,000
4,158,000
Total assets
$12,320,910
$10,617,143
Liabilities
Current liabilities
$1,275,960
$2,352,093
Long-term liabilities:
Mortgage note payable, 8%
$1,890,000
$0
Bonds payable, 8%
2,310,000
2,310,000
Total long-term liabilities
$4,200,000
$2,310,000
Total liabilities
$5,475,960
$4,662,093
Preferred $0.70 stock, $50 par
$850,000
$850,000
Common stock, $10 par
970,000
970,000
Retained earnings
5,024,950
4,135,050
Total stockholders' equity
$6,844,950
$5,955,050
Total liabilities and stockholders' equity
$12,320,910
$10,617,143
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.
$
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
%
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