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Instructions Questions Determine the following measures for 20Y2 (round to one decimal place, including percentages, except for per-share amounts): Assume a 365-day year. Shaded cells have 1,592,000 2.8 5.0 X 20.0 1. Working Capital 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover 5. Number of days' sales in receivables 6. Inventory turnover 7. Number of days' sales in inventory 8. Ratio of fixed assets to long-term liabilities 8. Ratio of liabilities to stockholders' equity 10. Times interest earned 18.0 X 14.8 25.0 X 2.0 X 0.8 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 8.8 X 1.2 X 6.7 X% 12.3 X % 12.1 X% 6.00 13.8 Instructions Questions 12. Return on total assets 6.7 X % 12.3 X% 12.1 X % 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 $ 6.00 13.8 1.00 1.2 % Instructions The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $82.80 on December 31, 2012 Marshall Inc Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 2041 1 2012 2011 Retained earnings, lanuary 1 53,692,000.00 1 Net Income 610,000.00 $3,262,000.00 540,000.00 $3,807,000.00 Total 54,502,000.00 Dividends On preferred stock $10,000.00 $10,000.00 7 On common stock 100.000.00 Total dividends 100,000.00 $110,000.00 $110,000.00 Retained earnings, December 31 54,192,000.00 55,692.000.00 Instructions Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 1 2012 20Y1 2 Sales $10,860,000.00 $10,000,000.00 6,000,000.00 5,460,000.00 3 Cost of goods sold 4 Gross profit 5 Selling expenses $4,860,000.00 $4,540,000.00 $2,160,000.00 $2,000,000.00 6 Administrative expenses 1,627,500.00 1,500,000.00 7 Total operating expenses $3,787,500.00 $3,500,000.00 Income from operations $1,040,000.00 9 Other revenue $1,072,500.00 99,500.00 20,000.00 10 $1,172,000.00 $1,060,000.00 11 Other expense (interest) 132,000.00 120,000.00 12 Income before income tax $1,040,000.00 $940,000.00 15 Income tax expense 430,000.00 400,000.00 14 Net income 5610,000.00 $540,000.00 Instructions 14 Net income $610,000.00 $540,000.00 Marshall Inc. Comparative Balance Sheet. December 31, 20Y2 and 20Y1 1 20Y2 2011 2 Assets 3 Current assets: 4 Cash $1,050,000.00 5 $950,000.00 420,000.00 301,000.00 6 Marketable securities Accounts receivable (net) Inventories 584,000.00 500,000.00 7 430,000.00 380,000.00 . Prepaid expenses Total current assets 109,000.00 9 $2,474,000.00 20,000.00 $2,270,000.00 800,000.00 10 Long-term investments 800,000.00 tructions 10 Long-term investments 800,000.00 800,000.00 11 Property, plant, and equipment (net) 5,750,000.00 5,184,000.00 12 Total assets $9,024,000.00 $8,254,000.00 13 Liabilities 14 Current liabilities $882,000.00 $812,000.00 15 Long-term liabilities: 16 Mortgage note payable, 6%, 17 Bonds payable,4%, $200,000.00 $0.00 3,000,000.00 3,000,000.00 18 Total long-term Liabilities $3,200,000.00 $3,000,000.00 19 Total liabilities $4,082,000.00 $3,812,000.00 20 Stockholders' Equity 21 Preferred 4% stock, $5 par $250,000.00 $250,000.00 500,000.00 22 Common stock, $5 par 500,000.00 4,192,000.00 3,692,000.00 23 Retained earnings 24 Total stockholders equity $4,942,000.00 $4,442,000.00 $8,254,000.00 25 Total liabilities and stockholders' equity $9,024,000.00 Instructions Determine the following measures for 20 Y2 (round to one decimal place, including percentages, except for per-share amounts): Assume a 365-day year 1. Working capital 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover 5. Number of days sales in receivables 6. Inventory tumover 7. Number of days' sales in Inventory 8. Batio of fixed assets to long-term labilities 9. Ratio of liabilities to stockholders' equity 10. Times interest earned 11. Asset turnover 12. Return on total assets 13. Return on stockholders eavily 14. Betum on common stockholders eaulty 15. Earnings per share on common stock 16. Price caminos ratio 17. Dividends per share of common stock 18. Dividend yield

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