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PR 17-4A Measures of Liquidity, Solvency, and Profitability OBJ. 3, 4, 5 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 how effectively a company uses its assets. Measures the profitability of a company's assets. Measures the profitability of the investment by stockholders. Measures the profitability of the investment by common stockholders. Measures future earnings prospects, based on the relationship between market value of common stock and earnings. Measures the extent to which earnings are being distributed to common stockholders. Measures the rate of return to common stockholders in terms of dividends. 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 Answer: Check figure: 5 . Number of days' sales in receivables, 18.3 Use Measures the company's ability to pay current liabilities. Measures the company's instant debt-paying ability. Measures the company's efficiency in collecting receivables and in the management of credit. Measures the company's efficiency in managing merchandise inventory. Measures the margin of safety available to long-term creditors. Measures how much of the company is financed by debt and equity. Measures the risk that interest payments will not be made if earnings decrease. Determine the following measures for 20Y2, rounding 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 \begin{tabular}{|c|c|c|c|c|} \hline \multirow[t]{2}{*}{ 1.) } & Working Capital & \multirow[b]{2}{*}{ Numerator } & \multirow[b]{2}{*}{ Denominator } & \multirow[b]{2}{*}{ Calculated Value } \\ \hline & Ratio & & & \\ \hline 2.) & Current ratio & & & \\ \hline 3.) & Quick ratio & & & \\ \hline 4.) & Accounts receivable turnover & & & \\ \hline 5.) & Number of days' sales in receivables & & & \\ \hline 6.) & Inventory turnover & & & \\ \hline 7.) & Number of days' sales in inventory & & & \\ \hline 8.) & Ratio of fixed assets to long-term liabilities & & & \\ \hline 9.) & Ratio of liabilities to stockholders' equity & & & \\ \hline 10.) & Times interest earned & & & \\ \hline 11.) & Asset turnover & & & \\ \hline 12.) & Return on total assets & & & \\ \hline 13.) & Return on stockholder's equity & & & \\ \hline 14.) & Return on common stockholder's equity & & & \\ \hline 15.) & Earnings per share on common stock & & & \\ \hline 16.) & Price-earnings ratio & & & \\ \hline 17.) & Dividends per share of common stock & & & \\ \hline 18.) & Dividend yield & & & \\ \hline & & & & \\ \hline & & & & \\ \hline \end{tabular}

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