Measures of liquidity, solvency, and profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $82.60 on December 31, 20Y2....


Measures of liquidity, solvency, and profitability


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

20Y2

20Y1
Retained earnings, January 1$3,704,000$3,264,000
Net income$ 600,000$ 550,000
Dividends:
On preferred stock(10,000)(10,000)
On common stock(100,000)(100,000)
Increase in retained earnings$ 490,000$ 440,000
Retained earnings, December 31$4,194,000$3,704,000





















































































Marshall Inc.

Comparative Income Statement

For the Years Ended December 31, 20Y2 and 20Y1

20Y2

20Y1
Sales$ 10,850,000$10,000,000
Cost of goods sold(6,000,000)(5,450,000)
Gross profit$ 4,850,000$ 4,550,000
Selling expenses$ (2,170,000)$ (2,000,000)
Administrative expenses(1,627,500)(1,500,000)
Total operating expenses$(3,797,500)$ (3,500,000)
Operating income$ 1,052,500$ 1,050,000
Other revenue and expense:
Other revenue99,50020,000
Other expense (interest)(132,000)(120,000)
Income before income tax expense$ 1,020,000$ 950,000
Income tax expense(420,000)(400,000)
Net income$ 600,000$ 550,000










































































































































Marshall Inc.

Comparative Balance Sheet

December 31, 20Y2 and 20Y1

20Y2

20Y1

Assets
Current assets:
Cash$1,050,000$ 950,000
Marketable securities301,000420,000
Accounts receivable (net)585,000500,000
Inventories420,000380,000
Prepaid expenses108,00020,000
Total current assets$ 2,464,000$2,270,000
Long-term investments800,000800,000
Property, plant, and equipment (net)5,760,0005,184,000
Total assets$ 9,024,000$8,254,000

Liabilities
Current liabilities$ 880,000$ 800,000
Long-term liabilities:
Mortgage note payable, 6%$ 200,000$ 0
Bonds payable, 4%3,000,0003,000,000
Total long-term liabilities$ 3,200,000$3,000,000
Total liabilities$ 4,080,000$3,800,000

Stockholders’ Equity
Preferred 4% stock, $5 par$ 250,000$ 250,000
Common stock, $5 par500,000500,000
Retained earnings4,194,0003,704,000
Total stockholders’ equity$ 4,944,000$4,454,000
Total liabilities and stockholders’ equity$ 9,024,000$8,254,000

Determine the following measures for 20Y2. Round to one decimal place, including percentages, except for per-share amounts, which should be rounded to the nearest cent.































































































1. Working Capital$fill in the blank 1
2. Current ratiofill in the blank 2
3. Quick ratiofill in the blank 3
4. Accounts receivable turnoverfill in the blank 4
5. Number of days’ sales in receivablesfill in the blank 5
6. Inventory turnoverfill in the blank 6
7. Number of days’ sales in inventoryfill in the blank 7
8. Ratio of fixed assets to long-term liabilitiesfill in the blank 8
9. Ratio of liabilities to stockholders’ equityfill in the blank 9
10. Times interest earnedfill in the blank 10
11. Asset turnoverfill in the blank 11
12. Return on total assetsfill in the blank 12%
13. Return on stockholders’ equityfill in the blank 13%
14. Return on common stockholders’ equityfill in the blank 14%
15. Earnings per share on common stock$fill in the blank 15
16. Price-earnings ratiofill in the blank 16
17. Dividends per share of common stock$fill in the blank 17
18. Dividend yieldfill in the blank 18%
Jun 02, 2022
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