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 %

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Chapter9: Metric-analysis Of Financial Statements
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Problem 9.4.17P: Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of...
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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 Retained Earnings Statement
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 preferred stock
$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 Balance Sheet
December 31, 20Y2 and 20Y1

20Y2
20Y1
Assets

Current assets

 

Cash
$870,600

$999,790


Marketable securities
1,317,660

1,656,780


Accounts receivable (net)
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

Stockholders' Equity


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. 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

%

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