Long-term investments3,002,8341,966,297Property, plant, and equipment (net)4,320,0003,888,000Total assets$10,790,190$9,922,537LiabilitiesCurrent liabilities$1,195,640$2,737,087Long-term liabilities:Mortgage note payable, 8%$1,620,000$0Bonds payable, 8%1,980,0001,980,000Total long-term liabilities$3,600,000$1,980,000Total liabilities$4,795,640$4,717,087Stockholders' EquityPreferred $0.70 stock, $50 par$750,000$750,000Common stock, $10 par860,000860,000Retained earnings4,384,5503,595,450Total stockholders' equity$5,994,550$5,205,450Total liabilities and stockholders' equity$10,790,190$9,922,537Required:Determine the following measures for 20Y2, rounding to one decimal place, except for dollar amounts, which should be rounded to the nearest cent. Usethe rounded answer of the requirement for subsequent requirement, if required. Assume 365 days a year.1. Working capital2,271,7162. Current ratio2.93. Quick ratio2.24. Accounts receivable turnover5.85. Number of days' sales in receivablesdays6. Inventory turnover7. Number of days' sales in inventory8. Ratio of fixed assets to long-term liabilitiesdays9. Ratio of liabilities to stockholders" equity10. Times interest earned11. Asset turnover12. Return on total assets%13. Return on stockholders' equity14. Return on common stockholders“ equity%15. Earnings per share on common stock16. Price-earnings ratio17. Dividends per share of common stock18. Dividend yield% Measures of liquidity, Solvency, and ProfitabilityThe comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 67 on December 31, 20Y2.Marshall Inc.Comparative Retained Earnings StatementFor the Years Ended December 31, 20Y2 and 20Y120Y220Υ1Retained earnings, January 1$3,595,450$3,035,750Net income851,200621,800Dividends:On preferred stockOn common stock(10,500)(10,500)(51,600)(51,600)Retained earnings, December 31$4,384,550$3,595,450Marshall Inc.Comparative Income StatementFor the Years Ended December 31, 20Y2 and 20Y120Υ220Υ1Sales$4,847,930$4,466,640Cost of merchandise sold1,594,3201,466,770Gross profit$3,253,610$2,999,870Selling expenses$1,112,980$1,377,430Administrative expenses948,100808,960Total operating expenses$2,061,080$2,186,39oIncome from operations$1,192,530$813,480Other revenue and expense:Other revenue62,77051,920Other expense (interest)(288,000)(158,400)Income before income tax expense$967,300$707,000Income tax expense116,10085,200Net income$851,200$621,800Marshall Inc.Comparative Balance SheetDecember 31, 20Y2 and 20Y120Y220Y1AssetsCurrent assets:Cash$726,520$966,540Marketable securities1,099,5901,601,690Accounts receivable (net)861,400810,300Inventories642,400496,400Prepaid expenses137,446193,310Total current assets$3,467,356$4,068,24o

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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 $ 67 on December 31, 20Y2. Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 20Υ2 20Y1 Retained earnings, January 1 $3,595,450 $3,035,750 Net income 851,200 621,800 Dividends: On preferred stock On common stock (10,500) (10,500) (51,600) (51,600) $4,384,550 Retained earnings, December 31 $3,595,450 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Υ1 Sales $4,847,930 $4,466,640 Cost of merchandise sold 1,594,320 1,466,770 Gross profit $3,253,610 $2,999,870 Selling expenses $1,112,980 $1,377,430 Administrative expenses 948,100 808,960 Total operating expenses $2,061,080 $2,186,390 Income from operations $1,192,530 $813,480 Other revenue and expense: Other revenue 62,770 51,920 Other expense (interest) (288,000) (158,400) Income before income tax expense $967,300 $707,000 Income tax expense 116,100 85,200 Net income $851,200 $621,800 Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 20Υ2 20Υ1 Assets Current assets: Cash $726,520 $966,540 Marketable securities 1,099,590 1,601,690 Accounts receivable (net) 861,400 810,300 Inventories 642,400 496,400 Prepaid expenses 137,446 193,310 Total current assets $3.467.356 $4.068.240

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter17: Financial Statement Analysis

Section: Chapter Questions

Problem 4PA: Measures of liquidity, solvency, and profitability The comparative financial statements of Marshall...