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Cash Marketable securities Accounts receivable (net) Inventories Prepaid expenses Total current assets ong-term investments roperty, plant, and equipment (net) Total assets Liabilities Current liabilities Long-term liabilities: Mortgage note payable, 6% Bonds payable, 4% Total long-term liabilities Total liabilities Stockholders' Equity Preferred 4% stock, $5 par Common stock, $5 par Retained earnings $1,050,000 $950,000 301,000 420,000 585,000 500,000 420,000 380,000 108,000 20,000 $2,464,000 $2,270,000 800,000 800,000 5,760,000 5,184,000 $9,024,000 $8,254,000 $ 880,000 $200,000 3,000,000 $ 800,000 $0 3,000,000 $3,200,000 $3,000,000 $4,080,000 $3,800,000 $250,000 $250,000 500,000 500,000 4,194,000 3,704,000 $4,944,000 $4,454,000 $9,024,000 $8,254,000 Total stockholders' equity Total liabilities and stockholders' equity Determine the following measures for 20Y2. Round to one decimal place, including percentages, except for per-share amounts, which should be rounded to the nearest cent. 1. Working Capital 2. Current ratio 3. Quick ratio

Cash Marketable securities Accounts receivable (net) Inventories Prepaid expenses Total current assets ong-term investments roperty, plant, and equipment (net) Total assets Liabilities Current liabilities Long-term liabilities: Mortgage note payable, 6% Bonds payable, 4% Total long-term liabilities Total liabilities Stockholders' Equity Preferred 4% stock, $5 par Common stock, $5 par Retained earnings $1,050,000 $950,000 301,000 420,000 585,000 500,000 420,000 380,000 108,000 20,000 $2,464,000 $2,270,000 800,000 800,000 5,760,000 5,184,000 $9,024,000 $8,254,000 $ 880,000 $200,000 3,000,000 $ 800,000 $0 3,000,000 $3,200,000 $3,000,000 $4,080,000 $3,800,000 $250,000 $250,000 500,000 500,000 4,194,000 3,704,000 $4,944,000 $4,454,000 $9,024,000 $8,254,000 Total stockholders' equity Total liabilities and stockholders' equity Determine the following measures for 20Y2. Round to one decimal place, including percentages, except for per-share amounts, which should be rounded to the nearest cent. 1. Working Capital 2. Current ratio 3. Quick ratio

FINANCIAL ACCOUNTING
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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Chap 14 Q.4
eBook Measures of liquidity, solvency, and profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $82.60 on December 31, 20Y2. Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 $3,704,000 $600,000 Retained earnings, January 1 Net income Dividends: On preferred stock On common stock Increase in retained earnings Retained earnings, December 31 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Operating income Other revenue and expense: Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 $10,850,000 $10,000,000 (6,000,000) (5,450,000) $4,850,000 $4,550,000 $(2,170,000) $(2,000,000) (1,627,500) (1,500,000) $(3,797,500) $(3,500,000) $1,052,500 $1,050,000 Other revenue Other expense (interest) Income before income tax expense Income tax expense Net income Current assets: Cash Marshall Inc. Assets Marketable securities Accounts receivable (net) Inventories (10,000) (10,000) (100,000) (100,000) $490,000 $440,000 $4,194,000 $3,704,000 Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 20Y1 $3,264,000 $550,000 Prepaid expenses Total current assets Long-term investments Property, plant, and equipment (net) 99,500 (132,000) $1,020,000 (420,000) $600,000 2012 20,000 (120,000) $950,000 (400,000) $550,000 10.034.000 20Y1 $1,050,000 301,000 585,000 420,000 108,000 $2,464,000 $2,270,000 800,000 800,000 5,760,000 5,184,000 $950,000 420,000 500,000 380,000 20,000 +0.254.000 K
Transcribed Image Text:eBook Measures of liquidity, solvency, and profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $82.60 on December 31, 20Y2. Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 $3,704,000 $600,000 Retained earnings, January 1 Net income Dividends: On preferred stock On common stock Increase in retained earnings Retained earnings, December 31 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Operating income Other revenue and expense: Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 $10,850,000 $10,000,000 (6,000,000) (5,450,000) $4,850,000 $4,550,000 $(2,170,000) $(2,000,000) (1,627,500) (1,500,000) $(3,797,500) $(3,500,000) $1,052,500 $1,050,000 Other revenue Other expense (interest) Income before income tax expense Income tax expense Net income Current assets: Cash Marshall Inc. Assets Marketable securities Accounts receivable (net) Inventories (10,000) (10,000) (100,000) (100,000) $490,000 $440,000 $4,194,000 $3,704,000 Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 20Y1 $3,264,000 $550,000 Prepaid expenses Total current assets Long-term investments Property, plant, and equipment (net) 99,500 (132,000) $1,020,000 (420,000) $600,000 2012 20,000 (120,000) $950,000 (400,000) $550,000 10.034.000 20Y1 $1,050,000 301,000 585,000 420,000 108,000 $2,464,000 $2,270,000 800,000 800,000 5,760,000 5,184,000 $950,000 420,000 500,000 380,000 20,000 +0.254.000 K
eBook Current assets: Cash Marketable securities Accounts receivable (net) Inventories Prepaid expenses Assets Total current assets Long-term investments Property, plant, and equipment (net) Total assets Liabilities Current liabilities Long-term liabilities: Mortgage note payable, 6% Bonds payable, 4% Total liabilities Total long-term liabilities Stockholders' Equity Preferred 4% stock, $5 par Common stock, $5 par Retained earnings $1,050,000 $950,000 420,000 500,000 380,000 20,000 1. Working Capital 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover 5. Days' sales in receivables 6. Inventory turnover 7. Days' sales in inventory 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 301,000 585,000 420,000 108,000 $2,464,000 $2,270,000 800,000 800,000 5,760,000 5,184,000 $9,024,000 $8,254,000 $ 880,000 $200,000 $0 3,000,000 3,000,000 $3,200,000 $3,000,000 $4,080,000 $3,800,000 $250,000 $250,000 500,000 500,000 4,194,000 3,704,000 $4,944,000 $4,454,000 $9,024,000. $8,254,000 $ 800,000 Total stockholders' equity Total liabilities and stockholders' equity. Determine the following measures for 20Y2. Round to one decimal place, including percentages, except for per-share amounts, which should be rounded to the nearest cent. days days % % % % Home
Transcribed Image Text:eBook Current assets: Cash Marketable securities Accounts receivable (net) Inventories Prepaid expenses Assets Total current assets Long-term investments Property, plant, and equipment (net) Total assets Liabilities Current liabilities Long-term liabilities: Mortgage note payable, 6% Bonds payable, 4% Total liabilities Total long-term liabilities Stockholders' Equity Preferred 4% stock, $5 par Common stock, $5 par Retained earnings $1,050,000 $950,000 420,000 500,000 380,000 20,000 1. Working Capital 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover 5. Days' sales in receivables 6. Inventory turnover 7. Days' sales in inventory 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 301,000 585,000 420,000 108,000 $2,464,000 $2,270,000 800,000 800,000 5,760,000 5,184,000 $9,024,000 $8,254,000 $ 880,000 $200,000 $0 3,000,000 3,000,000 $3,200,000 $3,000,000 $4,080,000 $3,800,000 $250,000 $250,000 500,000 500,000 4,194,000 3,704,000 $4,944,000 $4,454,000 $9,024,000. $8,254,000 $ 800,000 Total stockholders' equity Total liabilities and stockholders' equity. Determine the following measures for 20Y2. Round to one decimal place, including percentages, except for per-share amounts, which should be rounded to the nearest cent. days days % % % % Home
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