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 $ 62 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
$4,471,650
$3,767,350
Net income
1,064,000
771,600
Dividends:
On preferred stock
(13,300)
(13,300)
On common stock
(54,000)
(54,000)
Retained earnings, December 31
$5,468,350
$4,471,650
Marshall Inc.
Comparative Income Statement
For the Years Ended December 31, 20Y2 and 20Y1
20Y2
20Y1
Sales
$5,761,525
$5,308,370
Cost of merchandise sold
2,053,490
1,889,210
Gross profit
$3,708,035
$3,419,160
Selling expenses
$1,193,290
$1,514,850
Administrative expenses
1,016,505
889,670
Total operating expenses
$2,209,795
$2,404,520
Income from operations
$1,498,240
$1,014,640
Other revenue and expense:
Other revenue
78,860
64,760
Other expense (interest)
(368,000)
(202,400)
Income before income tax expense
$1,209,100
$877,000
Income tax expense
145,100
105,400
Net income
$1,064,000
$771,600
Marshall Inc.
Comparative Balance Sheet
December 31, 20Y2 and 20Y1
20Y2
20Y1
Assets
Current assets:
Cash
$855,680
$1,195,970
Marketable securities
1,295,080
1,981,900
Accounts receivable (net)
1,080,400
1,014,700
Inventories
803,000
613,200
Prepaid expenses
161,880
239,190
Total current assets
$4,196,040
$5,044,960
Long-term investments
4,240,990
2,705,812
Property, plant, and equipment (net)
5,060,000
4,554,000
Total assets
$13,497,030
$12,304,772
Liabilities
Current liabilities
$1,398,680
$3,273,122
Long-term liabilities:
Mortgage note payable, 8%
$2,070,000
$0
Bonds payable, 8%
2,530,000
2,530,000
Total long-term liabilities
$4,600,000
$2,530,000
Total liabilities
$5,998,680
$5,803,122
Stockholders' Equity
Preferred $0.70 stock, $50 par
$950,000
$950,000
Common stock, $10 par
1,080,000
1,080,000
Retained earnings
5,468,350
4,471,650
Total stockholders' equity
$7,498,350
$6,501,650
Total liabilities and stockholders' equity
$13,497,030
$12,304,772
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
%
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