The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 57 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 $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
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 57 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 $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
Cornerstones of Financial Accounting
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Publisher:Jay Rich, Jeff Jones
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Problem 37CE: Stockholder Profitability Ratios The following information pertains to Montague Corporation...
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The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 57 on December 31, 20Y2.
Marshall Inc. | ||||||
Comparative |
||||||
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 |
$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 | ||||
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 | ||||
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.
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