The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall...
60.1K
Verified Solution
Link Copied!
Question
Accounting
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $82.60 on December 31, 20Y2.
Marshall Inc.
Comparative Retained Earnings Statement
For the Years Ended December 31, 20Y2 and 20Y1
1
20Y2
20Y1
2
Retained earnings, January 1
$3,704,000.00
$3,264,000.00
3
Net income
600,000.00
550,000.00
4
Total
$4,304,000.00
$3,814,000.00
5
Dividends:
6
On preferred stock
$10,000.00
$10,000.00
7
On common stock
100,000.00
100,000.00
8
Total dividends
$110,000.00
$110,000.00
9
Retained earnings, December 31
$4,194,000.00
$3,704,000.00
Marshall Inc.
Comparative Income Statement
For the Years Ended December 31, 20Y2 and 20Y1
1
20Y2
20Y1
2
Sales
$10,850,000.00
$10,000,000.00
3
Cost of goods sold
6,000,000.00
5,450,000.00
4
Gross profit
$4,850,000.00
$4,550,000.00
5
Selling expenses
$2,170,000.00
$2,000,000.00
6
Administrative expenses
1,627,500.00
1,500,000.00
7
Total operating expenses
$3,797,500.00
$3,500,000.00
8
Income from operations
$1,052,500.00
$1,050,000.00
9
Other income
99,500.00
20,000.00
10
$1,152,000.00
$1,070,000.00
11
Other expense (interest)
132,000.00
120,000.00
12
Income before income tax
$1,020,000.00
$950,000.00
13
Income tax expense
420,000.00
400,000.00
14
Net income
$600,000.00
$550,000.00
Marshall Inc.
Comparative Balance Sheet
December 31, 20Y2 and 20Y1
1
20Y2
20Y1
2
Assets
3
Current assets:
4
Cash
$1,050,000.00
$950,000.00
5
Marketable securities
301,000.00
420,000.00
6
Accounts receivable (net)
585,000.00
500,000.00
7
Inventories
420,000.00
380,000.00
8
Prepaid expenses
108,000.00
20,000.00
9
Total current assets
$2,464,000.00
$2,270,000.00
10
Long-term investments
800,000.00
800,000.00
11
Property, plant, and equipment (net)
5,760,000.00
5,184,000.00
12
Total assets
$9,024,000.00
$8,254,000.00
13
Liabilities
14
Current liabilities
$880,000.00
$800,000.00
15
Long-term liabilities:
16
Mortgage note payable, 6%,
$200,000.00
$0.00
17
Bonds payable, 4%,
3,000,000.00
3,000,000.00
18
Total long-term liabilities
$3,200,000.00
$3,000,000.00
19
Total liabilities
$4,080,000.00
$3,800,000.00
20
Stockholders Equity
21
Preferred 4% stock, $5 par
$250,000.00
$250,000.00
22
Common stock, $5 par
500,000.00
500,000.00
23
Retained earnings
4,194,000.00
3,704,000.00
24
Total stockholders equity
$4,944,000.00
$4,454,000.00
25
Total liabilities and stockholders equity
$9,024,000.00
$8,254,000.00
Determine the following measures for 20Y2 (round to one decimal place, including percentages, except for per-share amounts):
1.
Working capital
2.
Current ratio
3.
Quick ratio
4.
Accounts receivable turnover
5.
Number of days sales in receivables
6.
Inventory turnover
7.
Number of days sales in inventory
8.
Ratio of fixed assets to long-term liabilities
9.
Ratio of liabilities to stockholders equity
10.
Times interest earned
11.
Asset turnover
12.
Return on total assets
13.
Return on stockholders equity
14.
Return on common stockholders equity
15.
Earnings per share on common stock
16.
Price-earnings ratio
17.
Dividends per share of common stock
18.
Dividend yield
Determine the following measures for 20Y2 (round to one decimal place, including percentages, except for per-share amounts):
1. Working Capital
1,584,000$
2. Current ratio
2.8
3. Quick ratio
2.2
4. Accounts receivable turnover
20.0
5. Number of days' sales in receivables
18.3
6. Inventory turnover
15.0
7. Number of days sales in inventory
24.3
8. Ratio of fixed assets to long-term liabilities
1.8
9. Ratio of liabilities to stockholders equity
0.8
10. Times interest earned
8.7
11. Asset turnover
1.4
12. Return on total assets
%
13. Return on stockholders equity
12.8%
14. Return on common stockholders equity
13.3%
15. Earnings per share on common stock
5.90$
16. Price-earnings ratio
14.0
17. Dividends per share of common stock
1.0$
18. Dividend yield
1.2%
I only need number 12. Return on total "assets" please, and the answer is not 6.94% or 6.95% the answer is something else this question has been answered wrong multiple times now please make sure its right this time around, thank you.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!