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 $ 54 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
$1,804,725
$1,524,975
Net income
403,200
312,400
Dividends:
On preferred stock
(13,300)
(13,300)
On common stock
(19,350)
(19,350)
Retained earnings, December 31
$2,175,275
$1,804,725
Marshall Inc.
Comparative Income Statement
For the Years Ended December 31, 20Y2 and 20Y1
20Y2
20Y1
Sales
$2,496,600
$2,300,290
Cost of merchandise sold
882,570
811,960
Gross profit
$1,614,030
$1,488,330
Selling expenses
$562,650
$680,510
Administrative expenses
479,290
399,670
Total operating expenses
$1,041,940
$1,080,180
Income from operations
$572,090
$408,150
Other revenue and expense:
Other revenue
30,110
26,050
Other expense (interest)
(144,000)
(79,200)
Income before income tax expense
$458,200
$355,000
Income tax expense
55,000
42,600
Net income
$403,200
$312,400
Marshall Inc.
Comparative Balance Sheet
December 31, 20Y2 and 20Y1
20Y2
20Y1
Assets
Current assets:
Cash
$396,490
$416,340
Marketable securities
600,090
689,940
Accounts receivable (net)
430,700
401,500
Inventories
321,200
248,200
Prepaid expenses
75,002
83,270
Total current assets
$1,823,482
$1,839,250
Long-term investments
1,570,013
864,714
Property, plant, and equipment (net)
1,980,000
1,782,000
Total assets
$5,373,495
$4,485,964
Liabilities
Current liabilities
$588,220
$881,239
Long-term liabilities:
Mortgage note payable, 8%
$810,000
$0
Bonds payable, 8%
990,000
990,000
Total long-term liabilities
$1,800,000
$990,000
Total liabilities
$2,388,220
$1,871,239
Stockholders' Equity
Preferred $0.70 stock, $20 par
$380,000
$380,000
Common stock, $10 par
430,000
430,000
Retained earnings
2,175,275
1,804,725
Total stockholders' equity
$2,985,275
$2,614,725
Total liabilities and stockholders' equity
$5,373,495
$4,485,964
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
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