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 $ 60 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
$3,521,100
$2,987,400
Net income
756,000
611,900
Dividends:
On preferred stock
(12,600)
(12,600)
On common stock
(65,600)
(65,600)
Retained earnings, December 31
$4,198,900
$3,521,100
Marshall Inc.
Comparative Income Statement
For the Years Ended December 31, 20Y2 and 20Y1
20Y2
20Y1
Sales
$5,058,900
$4,661,060
Cost of merchandise sold
1,752,000
1,611,840
Gross profit
$3,306,900
$3,049,220
Selling expenses
$1,184,950
$1,407,570
Administrative expenses
1,009,410
826,670
Total operating expenses
$2,194,360
$2,234,240
Income from operations
$1,112,540
$814,980
Other revenue and expense:
Other revenue
58,560
52,020
Other expense (interest)
(312,000)
(172,000)
Income before income tax expense
$859,100
$695,000
Income tax expense
103,100
83,100
Net income
$756,000
$611,900
Marshall Inc.
Comparative Balance Sheet
December 31, 20Y2 and 20Y1
20Y2
20Y1
Assets
Current assets:
Cash
$1,026,870
$682,810
Marketable securities
1,554,190
1,131,520
Accounts receivable (net)
868,700
817,600
Inventories
657,000
511,000
Prepaid expenses
194,274
136,560
Total current assets
$4,301,034
$3,279,490
Long-term investments
1,922,876
507,255
Property, plant, and equipment (net)
4,680,000
4,212,000
Total assets
$10,903,910
$7,998,745
Liabilities
Current liabilities
$1,265,010
$787,645
Long-term liabilities:
Mortgage note payable, 8%
$1,750,000
$0
Bonds payable, 8%
2,150,000
2,150,000
Total long-term liabilities
$3,900,000
$2,150,000
Total liabilities
$5,165,010
$2,937,645
Stockholders' Equity
Preferred $0.70 stock, $40 par
$720,000
$720,000
Common stock, $10 par
820,000
820,000
Retained earnings
4,198,900
3,521,100
Total stockholders' equity
$5,738,900
$5,061,100
Total liabilities and stockholders' equity
$10,903,910
$7,998,745
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
$fill in the blank 1
2. Current ratio
fill in the blank 2
3. Quick ratio
fill in the blank 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
%
Answer & Explanation
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