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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 59 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 $2,490,300    $2,110,600   
Net income 532,000   432,300  
Dividends:        
  On preferred stock (7,000)   (7,000)  
  On common stock (45,600)   (45,600)  
Retained earnings, December 31 $2,969,700    $2,490,300   


Marshall Inc.
Comparative Income Statement
For the Years Ended December 31, 20Y2 and 20Y1
      20Y2     20Y1
Sales $3,055,050   $2,814,770  
Cost of merchandise sold 1,160,700   1,067,840  
Gross profit $1,894,350   $1,746,930  
Selling expenses $610,240   $744,410  
Administrative expenses 519,840   437,200  
Total operating expenses $1,130,080   $1,181,610  
Income from operations $764,270   $565,320  
Other revenue and expense:        
    Other revenue 40,230   36,080  
    Other expense (interest) (200,000)   (110,400)  
Income before income tax expense $604,500   $491,000  
Income tax expense 72,500   58,700  
Net income $532,000   $432,300  


Marshall Inc.
Comparative Balance Sheet
December 31, 20Y2 and 20Y1
       20Y2      20Y1
Assets  
Current assets:    
  Cash $542,410   $557,250  
  Marketable securities 820,950   923,430  
  Accounts receivable (net) 584,000   547,500  
  Inventories 438,000   335,800  
  Prepaid expenses 102,624   111,450  
    Total current assets $2,487,984   $2,475,430  
Long-term investments 1,783,476   862,201  
Property, plant, and equipment (net) 3,000,000   2,700,000  
Total assets $7,271,460   $6,037,631  
Liabilities
Current liabilities $731,760   $1,097,331  
Long-term liabilities:    
  Mortgage note payable, 8% $1,120,000   $0  
  Bonds payable, 8% 1,380,000   1,380,000  
    Total long-term liabilities $2,500,000   $1,380,000  
Total liabilities $3,231,760   $2,477,331  
Stockholders' Equity    
Preferred $0.70 stock, $50 par $500,000   $500,000  
Common stock, $10 par 570,000   570,000  
Retained earnings 2,969,700   2,490,300  
Total stockholders' equity $4,039,700   $3,560,300  
Total liabilities and stockholders' equity $7,271,460   $6,037,631  

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.

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 fill in the blank 18 %
 

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