The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 55 on December 31, 20Y2.Marshall Inc.Comparative Retained Earnings StatementFor the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1Retained earnings, January 1$3,112,575 $2,638,225 Net income700,800 540,300 Dividends: On preferred stock(11,200) (11,200) On common stock(54,750) (54,750) Retained earnings, December 31$3,747,425 $3,112,575 Marshall Inc.Comparative Income StatementFor the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1Sales$3,863,160 $3,559,340 Cost of merchandise sold1,516,210 1,394,910 Gross profit$2,346,950 $2,164,430 Selling expenses$731,580 $918,970 Administrative expenses623,190 539,710 Total operating expenses$1,354,770 $1,458,680 Income from operations$992,180 $705,750 Other revenue and expense: Other revenue52,220 45,050 Other expense (interest)(248,000) (136,800) Income before income tax expense$796,400 $614,000 Income tax expense95,600 73,700 Net income$700,800 $540,300 Marshall Inc.Comparative Balance SheetDecember 31, 20Y2 and 20Y1 20Y2 20Y1Assets Current assets: Cash$698,750 $697,040 Marketable securities1,057,560 1,155,090 Accounts receivable (net)737,300 693,500 Inventories554,800 423,400 Prepaid expenses132,198 139,410 Total current assets$3,180,608 $3,108,440 Long-term investments2,310,757 1,125,115 Property, plant, and equipment (net)3,720,000 3,348,000 Total assets$9,211,365 $7,581,555 LiabilitiesCurrent liabilities$993,940 $1,388,980 Long-term liabilities: Mortgage note payable, 8%$1,390,000 $0 Bonds payable, 8%1,710,000 1,710,000 Total long-term liabilities$3,100,000 $1,710,000 Total liabilities$4,093,940 $3,098,980 Stockholders' Equity Preferred $0.70 stock, $40 par$640,000 $640,000 Common stock, $10 par730,000 730,000 Retained earnings3,747,425 3,112,575 Total stockholders' equity$5,117,425 $4,482,575 Total liabilities and stockholders' equity$9,211,365 $7,581,555 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 requirements, if required. Assume 365 days a year. ***SEE ATTACHED PHOTO FOR QUESTIONS ASKED ABOUT THE INFORMATION ABOVE. I AM NEEDING NUMBERS 12,14,18*****THE ANSWERS I HAVE ALREADY TRIED FOR 12 ARE, 8.3, 12.5, & 7.6*****THE ANSWERS FOR 14 THAT I HAVE ALREADY TRIED ARE, 14.3, 15.0 & 16.8** Total liabilities and stockholders' equityRequired:Determine the following measures for 20Y2, rounding to one decimal place, except for dollar amrequired. Assume 365 days a year.1. Working capital2.Current ratio3.4.5.6.7.Quick ratioAccounts receivable turnoverNumber of days' sales in receivables8.9.10.Inventory turnoverNumber of days' sales in inventoryRatio of fixed assets to long-term liabilitiesRatio of liabilities to stockholders' equityTimes interest earned11. Asset turnover12. Return on total assets13. Return on stockholders' equityReturn on common stockholders' equity15. Earnings per share on common stock16. Price-earnings ratio17. Dividends per share of common stock18. Dividend yield14.Check My Work(FEES)O2:BI$9,211,365$$7,581,5552,186,668 ✔3.2 ✓2.55.4 ✔67.6 ✔ days3.1 ✓117.7 ✔ days1.2 ✓0.8 ✔4.2 ✓0.50 V14.6 ✓ %]9.45 V0.75✓✓%%

Ratio analysis is a quantitative method of gaining insights into a co's liquidity, operational…

Answered: The comparative financial statements of…

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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The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 55 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	$3,112,575		$2,638,225
Net income	700,800		540,300
Dividends:
	On preferred stock	(11,200)		(11,200)
	On common stock	(54,750)		(54,750)
Retained earnings, December 31	$3,747,425		$3,112,575

Marshall Inc.
Comparative Income Statement
For the Years Ended December 31, 20Y2 and 20Y1
	20Y2	20Y1
Sales	$3,863,160		$3,559,340
Cost of merchandise sold	1,516,210		1,394,910
Gross profit	$2,346,950		$2,164,430
Selling expenses	$731,580		$918,970
Administrative expenses	623,190		539,710
Total operating expenses	$1,354,770		$1,458,680
Income from operations	$992,180		$705,750
Other revenue and expense:
Other revenue	52,220		45,050
Other expense (interest)	(248,000)		(136,800)
Income before income tax expense	$796,400		$614,000
Income tax expense	95,600		73,700
Net income	$700,800		$540,300

Marshall Inc.
Comparative Balance Sheet
December 31, 20Y2 and 20Y1
	20Y2	20Y1
Assets
Current assets:
	Cash	$698,750		$697,040
	Marketable securities	1,057,560		1,155,090
	Accounts receivable (net)	737,300		693,500
	Inventories	554,800		423,400
	Prepaid expenses	132,198		139,410
		Total current assets	$3,180,608		$3,108,440
Long-term investments	2,310,757		1,125,115
Property, plant, and equipment (net)	3,720,000		3,348,000
Total assets	$9,211,365		$7,581,555
Liabilities
Current liabilities	$993,940		$1,388,980
Long-term liabilities:
	Mortgage note payable, 8%	$1,390,000		$0
	Bonds payable, 8%	1,710,000		1,710,000
		Total long-term liabilities	$3,100,000		$1,710,000
Total liabilities	$4,093,940		$3,098,980
Stockholders' Equity
Preferred $0.70 stock, $40 par	$640,000		$640,000
Common stock, $10 par	730,000		730,000
Retained earnings	3,747,425		3,112,575
Total stockholders' equity	$5,117,425		$4,482,575
Total liabilities and stockholders' equity	$9,211,365		$7,581,555

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 requirements, if required. Assume 365 days a year.

***SEE ATTACHED PHOTO FOR QUESTIONS ASKED ABOUT THE INFORMATION ABOVE. I AM NEEDING NUMBERS 12,14,18***

**THE ANSWERS I HAVE ALREADY TRIED FOR 12 ARE, 8.3, 12.5, & 7.6***

**THE ANSWERS FOR 14 THAT I HAVE ALREADY TRIED ARE, 14.3, 15.0 & 16.8**

Total liabilities and stockholders' equity
Required:
Determine the following measures for 20Y2, rounding to one decimal place, except for dollar am
required. Assume 365 days a year.
1. Working capital
2.
Current ratio
3.
4.
5.
6.
7.
Quick ratio
Accounts receivable turnover
Number of days' sales in receivables
8.
9.
10.
Inventory turnover
Number of days' sales in inventory
Ratio of fixed assets to long-term liabilities
Ratio of liabilities to stockholders' equity
Times interest earned
11. Asset turnover
12. Return on total assets
13. Return on stockholders' equity
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
14.
Check My Work
(FEES)
O
2:
BI
$9,211,365
$
$7,581,555
2,186,668 ✔
3.2 ✓
2.5
5.4 ✔
67.6 ✔ days
3.1 ✓
117.7 ✔ days
1.2 ✓
0.8 ✔
4.2 ✓
0.50 V
14.6 ✓ %
]
9.45 V
0.75
✓
✓
%
%

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