17-3.5 Measures of liquidity, Solvency, and Profitability

The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 55 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			$ 2,846,800		$ 2,420,600
Net income			616,000		495,800
Total			$3,462,800		$ 2,916,400
Dividends:
	On preferred stock		$ 8,400		$ 8,400
	On common stock		61,200		61,200
		Total dividends	$ 69,600		$ 69,600
Retained earnings, December 31			$ 3,393,200		$ 2,846,800

Marshall Inc.
Comparative Income Statement
For the Years Ended December 31, 20Y2 and 20Y1
	20Y2		20Y1
Sales	$ 3,911,340		$ 3,603,690
Cost of goods sold	1,401,600		1,289,470
Gross profit	$ 2,509,740		$ 2,314,220
Selling expenses	$ 864,830		$ 1,041,170
Administrative expenses	736,710		611,480
Total operating expenses	$1,601,540		$1,652,650
Income from operations	$ 908,200		$ 661,570
Other revenue	47,800		42,230
	$ 956,000		$ 703,800
Other expense (interest)	256,000		140,800
Income before income tax	$ 700,000		$ 563,000
Income tax expense	84,000		67,200
Net income	$ 616,000		$ 495,800

Marshall Inc.
Comparative Balance Sheet
December 31, 20Y2 and 20Y1
			20Y2		20Y1
Assets
Current assets
	Cash		$ 771,710		$ 545,570
	Marketable securities		1,167,990		904,080
	Accounts receivable (net)		708,100		664,300
	Inventories		525,600		408,800
	Prepaid expenses		146,004		109,110
		Total current assets	$ 3,319,404		$ 2,631,860
Long-term investments			1,719,676		331,306
Property, plant, and equipment (net)			3,840,000		3,456,000
Total assets			$ 8,879,080		$ 6,419,166
Liabilities
Current liabilities			$ 1,005,880		$ 532,366
Long-term liabilities:
	Mortgage note payable, 8%		$ 1,440,000		$ 0
	Bonds payable, 8%		1,760,000		1,760,000
		Total long-term liabilities	$ 3,200,000		$ 1,760,000
Total liabilities			$ 4,205,880		$ 2,292,366
Stockholders' Equity
Preferred $0.70 stock, $50 par			$ 600,000		$ 600,000
Common stock, $10 par			680,000		680,000
Retained earnings			3,393,200		2,846,800
Total stockholders' equity			$ 4,673,200		$ 4,126,800
Total liabilities and stockholders' equity			$ 8,879,080		$ 6,419,166

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		%