The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall...
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Accounting
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 70 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
$ 3,327,700
$ 2,800,000
Net income
790,400
573,500
Total
$4,118,100
$ 3,373,500
Dividends:
On preferred stock
$ 9,800
$ 9,800
On common stock
36,000
36,000
Total dividends
$ 45,800
$ 45,800
Retained earnings, December 31
$ 4,072,300
$ 3,327,700
Marshall Inc.
Comparative Income Statement
For the Years Ended December 31, 20Y2 and 20Y1
20Y2
20Y1
Sales
$ 4,599,000
$ 4,237,250
Cost of goods sold
1,708,200
1,571,540
Gross profit
$ 2,890,800
$ 2,665,710
Selling expenses
$ 944,300
$ 1,194,270
Administrative expenses
804,410
701,390
Total operating expenses
1,748,710
1,895,660
Income from operations
$ 1,142,090
$ 770,050
Other revenue
60,110
49,150
$ 1,202,200
$ 819,200
Other expense (interest)
304,000
167,200
Income before income tax
$ 898,200
$ 652,000
Income tax expense
107,800
78,500
Net income
$ 790,400
$ 573,500
Marshall Inc.
Comparative Balance Sheet
December 31, 20Y2 and 20Y1
Dec. 31, 20Y2
Dec. 31, 20Y1
Assets
Current assets
Cash
$ 932,600
$ 883,870
Marketable securities
1,411,500
1,464,690
Accounts receivable (net)
846,800
795,700
Inventories
642,400
496,400
Prepaid expenses
176,431
176,770
Total current assets
$ 4,009,731
$ 3,817,430
Long-term investments
2,017,639
1,389,382
Property, plant, and equipment (net)
4,560,000
4,104,000
Total assets
$ 10,587,370
$ 9,310,812
Liabilities
Current liabilities
$ 1,215,070
$ 2,393,112
Long-term liabilities
Mortgage note payable, 8 %
$ 1,710,000
$ 0
Bonds payable, 8 %
2,090,000
2,090,000
Total long-term liabilities
$ 3,800,000
$ 2,090,000
Total liabilities
$ 5,015,070
$ 4,483,112
Stockholders' Equity
Preferred $ 0.70 stock, $ 50 par
$ 700,000
$ 700,000
Common stock, $ 10 par
800,000
800,000
Retained earnings
4,072,300
3,327,700
Total stockholders' equity
$ 5,572,300
$ 4,827,700
Total liabilities and stockholders' equity
$ 10,587,370
$ 9,310,812
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.
1. Working capital
$
2. Current ratio
3. Quick ratio
4. Accounts receivable turnover
5. Number of days' sales in receivables
days
6. Inventory turnover
7. Number of days' sales in inventory
days
8. Ratio of fixed assets to long-term liabilities
9. Ratio of liabilities to stockholders' equity
10. Times interest earned
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
17. Dividends per share of common stock
$
18. Dividend yield
%
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