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
$ 883,050
$ 755,950
Net income
201,600
154,800
Total
$1,084,650
$ 910,750
Dividends:
On preferred stock
$ 7,000
$ 7,000
On common stock
20,700
20,700
Total dividends
$ 27,700
$ 27,700
Retained earnings, December 31
$ 1,056,950
$ 883,050
Marshall Inc.
Comparative Income Statement
For the Years Ended December 31, 20Y2 and 20Y1
20Y2
20Y1
Sales
$ 1,300,860
$ 1,198,570
Cost of goods sold
503,700
463,400
Gross profit
$ 797,160
$ 735,170
Selling expenses
$ 263,690
$ 327,660
Administrative expenses
224,630
192,440
Total operating expenses
$488,320
$520,100
Income from operations
$ 308,840
$ 215,070
Other revenue
16,260
13,730
$ 325,100
$ 228,800
Other expense (interest)
96,000
52,800
Income before income tax
$ 229,100
$ 176,000
Income tax expense
27,500
21,200
Net income
$ 201,600
$ 154,800
Marshall Inc.
Comparative Balance Sheet
December 31, 20Y2 and 20Y1
20Y2
20Y1
Assets
Current assets
Cash
$ 353,740
$ 195,510
Marketable securities
535,400
324,000
Accounts receivable (net)
248,200
233,600
Inventories
189,800
146,000
Prepaid expenses
66,924
39,100
Total current assets
$ 1,394,064
$ 938,210
Long-term investments
288,531
54,104
Property, plant, and equipment (net)
1,440,000
1,296,000
Total assets
$ 3,122,595
$ 2,288,314
Liabilities
Current liabilities
$ 435,645
$ 315,264
Long-term liabilities:
Mortgage note payable, 8%
$ 540,000
$ 0
Bonds payable, 8%
660,000
660,000
Total long-term liabilities
$ 1,200,000
$ 660,000
Total liabilities
$ 1,635,645
$ 975,264
Stockholders' Equity
Preferred $0.70 stock, $20 par
$ 200,000
$ 200,000
Common stock, $10 par
230,000
230,000
Retained earnings
1,056,950
883,050
Total stockholders' equity
$ 1,486,950
$ 1,313,050
Total liabilities and stockholders' equity
$ 3,122,595
$ 2,288,314
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.
Inventory turnover
Number of days' sales in inventory
days
Ratio of fixed assets to long-term liabilities
Ratio of liabilities to stockholders' equity
Times interest earned
Asset turnover
Return on total assets
%
Return on stockholders equity
%
Return on common stockholders equity
%
Earnings per share on common stock
$
Price-earnings ratio
Dividends per share of common stock
$
Dividend yield
%
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