Measures of liquidity, Solvency and Profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 52 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 $ 1,954,200 $ 1,657,200 Net income 414,000 339,400 Total $2,368,200 $ 1,996,600 Dividends: On preferred stock $ 5,600 $ 5,600 On common stock 36,800 36,800 Total dividends $ 42,400 $ 42,400 Retained earnings, December 31 $ 2,325,800 $ 1,954,200 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales $ 2,493,680 $ 2,297,590 Cost of goods sold 889,140 818,010 Gross profit $ 1,604,540 $ 1,479,580 Selling expenses $ 547,110 $ 653,800 Administrative expenses 466,060 383,980 Total operating expenses 1,013,170 1,037,780 Income from operations $ 591,370 $ 441,800 Other revenue 31,130 28,200 $ 622,500 $ 470,000 Other expense (interest) 152,000 84,000 Income before income tax $ 470,500 $ 386,000 Income tax expense 56,500 46,600 Net income $ 414,000 $ 339,400 Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 Dec. 31, 20Y2 Dec. 31, 20Y1 Assets Current assets Cash $ 444,180 $ 397,820 Marketable securities 672,270 659,260 Accounts receivable (net) 459,900 430,700 Inventories 350,400 262,800 Prepaid expenses 84,034 79,560 Total current assets $ 2,010,784 $ 1,830,140 Long-term investments 1,253,656 410,618 Property, plant, and equipment (net) 2,470,000 2,223,000 Total assets $ 5,734,440 $ 4,463,758 Liabilities Current liabilities $ 648,640 $ 599,558 Long-term liabilities Mortgage note payable, 8 % $ 850,000 $ 0 Bonds payable, 8 % 1,050,000 1,050,000 Total long-term liabilities $ 1,900,000 $ 1,050,000 Total liabilities $ 2,548,640 $ 1,649,558 Stockholders' Equity Preferred $ 0.70 stock, $ 50 par $ 400,000 $ 400,000 Common stock, $ 10 par 460,000 460,000 Retained earnings 2,325,800 1,954,200 Total stockholders' equity $ 3,185,800 $ 2,814,200 Total liabilities and stockholders' equity $ 5,734,440 $ 4,463,758 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. I need parts 4-8 answered 1. Working capital $ 1362144 2. Current ratio 3 3. Quick ratio 3 4. Accounts receivable turnover fill in the blank 4 5. Number of days' sales in receivables fill in the blank 5 days 6. Inventory turnover fill in the blank 6 7. Number of days' sales in inventory fill in the blank 7 days 8. Ratio of fixed assets to long-term liabilities fill in the blank 8 9. Ratio of liabilities to stockholders' equity fill in the blank 9 10. Times interest earned fill in the blank 10 11. Asset turnover fill in the blank 11

Measures of liquidity, Solvency and Profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 52 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 $ 1,954,200 $ 1,657,200 Net income 414,000 339,400 Total $2,368,200 $ 1,996,600 Dividends: On preferred stock $ 5,600 $ 5,600 On common stock 36,800 36,800 Total dividends $ 42,400 $ 42,400 Retained earnings, December 31 $ 2,325,800 $ 1,954,200 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales $ 2,493,680 $ 2,297,590 Cost of goods sold 889,140 818,010 Gross profit $ 1,604,540 $ 1,479,580 Selling expenses $ 547,110 $ 653,800 Administrative expenses 466,060 383,980 Total operating expenses 1,013,170 1,037,780 Income from operations $ 591,370 $ 441,800 Other revenue 31,130 28,200 $ 622,500 $ 470,000 Other expense (interest) 152,000 84,000 Income before income tax $ 470,500 $ 386,000 Income tax expense 56,500 46,600 Net income $ 414,000 $ 339,400 Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 Dec. 31, 20Y2 Dec. 31, 20Y1 Assets Current assets Cash $ 444,180 $ 397,820 Marketable securities 672,270 659,260 Accounts receivable (net) 459,900 430,700 Inventories 350,400 262,800 Prepaid expenses 84,034 79,560 Total current assets $ 2,010,784 $ 1,830,140 Long-term investments 1,253,656 410,618 Property, plant, and equipment (net) 2,470,000 2,223,000 Total assets $ 5,734,440 $ 4,463,758 Liabilities Current liabilities $ 648,640 $ 599,558 Long-term liabilities Mortgage note payable, 8 % $ 850,000 $ 0 Bonds payable, 8 % 1,050,000 1,050,000 Total long-term liabilities $ 1,900,000 $ 1,050,000 Total liabilities $ 2,548,640 $ 1,649,558 Stockholders' Equity Preferred $ 0.70 stock, $ 50 par $ 400,000 $ 400,000 Common stock, $ 10 par 460,000 460,000 Retained earnings 2,325,800 1,954,200 Total stockholders' equity $ 3,185,800 $ 2,814,200 Total liabilities and stockholders' equity $ 5,734,440 $ 4,463,758 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. I need parts 4-8 answered 1. Working capital $ 1362144 2. Current ratio 3 3. Quick ratio 3 4. Accounts receivable turnover fill in the blank 4 5. Number of days' sales in receivables fill in the blank 5 days 6. Inventory turnover fill in the blank 6 7. Number of days' sales in inventory fill in the blank 7 days 8. Ratio of fixed assets to long-term liabilities fill in the blank 8 9. Ratio of liabilities to stockholders' equity fill in the blank 9 10. Times interest earned fill in the blank 10 11. Asset turnover fill in the blank 11

Financial Accounting

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...

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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 $ 52 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	$ 1,954,200		$ 1,657,200
Net income	414,000		339,400
Total	$2,368,200		$ 1,996,600
Dividends:
	On preferred stock	$ 5,600		$ 5,600
	On common stock	36,800		36,800
		Total dividends	$ 42,400		$ 42,400
Retained earnings, December 31	$ 2,325,800		$ 1,954,200

Marshall Inc.
Comparative Income Statement
For the Years Ended December 31, 20Y2 and 20Y1
	20Y2	20Y1
Sales	$ 2,493,680		$ 2,297,590
Cost of goods sold	889,140		818,010
Gross profit	$ 1,604,540		$ 1,479,580
Selling expenses	$ 547,110		$ 653,800
Administrative expenses	466,060		383,980
Total operating expenses	1,013,170		1,037,780
Income from operations	$ 591,370		$ 441,800
Other revenue	31,130		28,200
	$ 622,500		$ 470,000
Other expense (interest)	152,000		84,000
Income before income tax	$ 470,500		$ 386,000
Income tax expense	56,500		46,600
Net income	$ 414,000		$ 339,400

Marshall Inc.
Comparative Balance Sheet
December 31, 20Y2 and 20Y1
	Dec. 31, 20Y2	Dec. 31, 20Y1
Assets
Current assets
	Cash	$ 444,180		$ 397,820
	Marketable securities	672,270		659,260
	Accounts receivable (net)	459,900		430,700
	Inventories	350,400		262,800
	Prepaid expenses	84,034		79,560
		Total current assets	$ 2,010,784		$ 1,830,140
Long-term investments	1,253,656		410,618
Property, plant, and equipment (net)	2,470,000		2,223,000
Total assets	$ 5,734,440		$ 4,463,758
Liabilities
Current liabilities	$ 648,640		$ 599,558
Long-term liabilities
	Mortgage note payable, 8 %	$ 850,000		$ 0
	Bonds payable, 8 %	1,050,000		1,050,000
		Total long-term liabilities	$ 1,900,000		$ 1,050,000
Total liabilities	$ 2,548,640		$ 1,649,558
Stockholders' Equity
Preferred $ 0.70 stock, $ 50 par	$ 400,000		$ 400,000
Common stock, $ 10 par	460,000		460,000
Retained earnings	2,325,800		1,954,200
Total stockholders' equity	$ 3,185,800		$ 2,814,200
Total liabilities and stockholders' equity	$ 5,734,440		$ 4,463,758

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.

I need parts 4-8 answered

1. Working capital	$ 1362144
2. Current ratio	3
3. Quick ratio	3
4. Accounts receivable turnover	fill in the blank 4
5. Number of days' sales in receivables	fill in the blank 5	days
6. Inventory turnover	fill in the blank 6
7. Number of days' sales in inventory	fill in the blank 7	days
8. Ratio of fixed assets to long-term liabilities	fill in the blank 8
9. Ratio of liabilities to stockholders' equity	fill in the blank 9
10. Times interest earned	fill in the blank 10
11. Asset turnover	fill in the blank 11
12. Return on total assets	fill in the blank 12	%
13. Return on stockholders’ equity	fill in the blank 13	%
14. Return on common stockholders’ equity	fill in the blank 14	%
15. Earnings per share on common stock	$ fill in the blank 15
16. Price-earnings ratio	fill in the blank 16
17. Dividends per share of common stock	$ fill in the blank 17
18. Dividend yield	fill in the blank 18	%

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