Chapter 17 Homework PR 17-4A Measures of liquidity, solvency, and profitability The comparative financial statements of Marshall, Inc. are as follows. The market price of Marshall, Inc. common stock was $82.60 on December 31, 2022. Marshall, Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 2022 and 2021 2022 Retained Earnings, January 1 Net Income Dividends: On preferred stock On common stock Retained Earnings, December 31 $3,704,000 600,000 (10,000) (100,000) $4.194.000 2021 $3,264,000 550,000 (10,000) (100,000) $3.704.000 Retrieved from: Warren, C. S., Jonick, C. A., & Schneider, J. S., (2021). Accounting (28 ed.). Boston, MA: Cengage Marshall, Inc. Comparative Income Statement For the Years Ended December 31, 2022 and 2021 2022 $10,850,000 6,000,000 $4,850,000 $ 2,170,000 1,627,500 3,797,500 $ $ 1,052,500 Sales Cost of merchandise sold Gross profit Selling expenses Administrative expenses Total operating expenses Income from operations Other revenue and expense: Other revenue Other expense (interest) Income before income tax expense Income tax expense Net Income 99,500 (132,000) $ 1,020,000 420,000 $ 600.000 2021 $10,000,000 5,450,000 $ 4,550,000 $ 2,000,000 1,500,000 $3,500,000 $ 1,050,000 20,000 (120,000) $ 950,000 400,000 $ 550.000 Retrieved from: Warren, C. S., Jonick, C. A., & Schneider, J. S., (2021). Accounting (28 ed.). Boston, MA: Cengage
Chapter 17 Homework PR 17-4A Measures of liquidity, solvency, and profitability The comparative financial statements of Marshall, Inc. are as follows. The market price of Marshall, Inc. common stock was $82.60 on December 31, 2022. Marshall, Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 2022 and 2021 2022 Retained Earnings, January 1 Net Income Dividends: On preferred stock On common stock Retained Earnings, December 31 $3,704,000 600,000 (10,000) (100,000) $4.194.000 2021 $3,264,000 550,000 (10,000) (100,000) $3.704.000 Retrieved from: Warren, C. S., Jonick, C. A., & Schneider, J. S., (2021). Accounting (28 ed.). Boston, MA: Cengage Marshall, Inc. Comparative Income Statement For the Years Ended December 31, 2022 and 2021 2022 $10,850,000 6,000,000 $4,850,000 $ 2,170,000 1,627,500 3,797,500 $ $ 1,052,500 Sales Cost of merchandise sold Gross profit Selling expenses Administrative expenses Total operating expenses Income from operations Other revenue and expense: Other revenue Other expense (interest) Income before income tax expense Income tax expense Net Income 99,500 (132,000) $ 1,020,000 420,000 $ 600.000 2021 $10,000,000 5,450,000 $ 4,550,000 $ 2,000,000 1,500,000 $3,500,000 $ 1,050,000 20,000 (120,000) $ 950,000 400,000 $ 550.000 Retrieved from: Warren, C. S., Jonick, C. A., & Schneider, J. S., (2021). Accounting (28 ed.). Boston, MA: Cengage
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Chapter 17 Homework
PR 17-4A Measures of liquidity, solvency, and profitability
The comparative financial statements of Marshall, Inc. are as follows. The
market price of Marshall, Inc. common stock was $82.60 on December 31,
2022.
Marshall, Inc.
Comparative Retained Earnings Statement
For the Years Ended December 31, 2022 and 2021
2022
Retained Earnings, January 1
Net Income
Dividends:
On preferred stock
On common stock
Retained Earnings, December 31
$3,704,000
600,000
(10,000)
(100,000)
$4.194.000
2021
$3,264,000
550,000
(10,000)
(100,000)
$3.704.000
Retrieved from:
Warren, C. S., Jonick, C. A., & Schneider, J. S., (2021). Accounting (28 ed.). Boston, MA: Cengage
Marshall, Inc.
Comparative Income Statement
For the Years Ended December 31, 2022 and 2021
2022
$10,850,000
6.000.000
$ 4,850,000
$ 2,170,000
1,627,500
$ 3,797,500
$ 1,052,500
Sales
Cost of merchandise sold
Gross profit
Selling expenses
Administrative expenses
Total operating expenses
Income from operations
Other revenue and expense:
Other revenue
Other expense (interest)
Income before income tax expense
Income tax expense
Net Income
99,500
(132,000)
$ 1,020,000
420,000
$ 600.000
2021
$10,000,000
5,450,000
$ 4,550,000
$ 2,000,000
1,500,000
$ 3,500,000
$ 1,050,000
20,000
(120,000)
$ 950,000
400,000
$ 550.000
Retrieved from:
Warren, C. S., Jonick, C. A., & Schneider, J. S., (2021). Accounting (28 ed.). Boston, MA: Cengage
Transcribed Image Text:Current assets:
Cash
Marketable securities
Accounts receivable (net)
Inventories
Prepaid expenses
Marshall, Inc.
Comparative Balance Sheets
December 31, 2022 and 2021
2022
Total current assets
Long-term investments
Property, plant, and equipment (net)
Total assets
Current liabilities:
Long-term liabilities:
Mortgage note payable, 6%
Bonds payable, 4%
Total liabilities
Total long-term liabilities
Preferred 4% stock, $5 par
Common stock, $5 par
Retained earnings
Assets
$ 1,050,000
301,000
585,000
420,000
108,000
$ 2,464,000
Liabilities
Total stockholders' equity
Total liabilities and stockholders' equity
800,000
5,760,000
$9.024.000
$ 880,000
$ 200,000
3,000,000
$3,200,000
$ 4,080,000
Stockholders' Equity
$ 250,000
500,000
4,194,000
$ 4,944,000
$9.024.000
2021
$ 950,000
420,000
500,000
380,000
20,000
$ 2,270,000
800,000
5,184,000
$ 8.254.000
$ 800,000
$
0
3,000,000
$3,000,000
$ 3,800,000
$ 250,000
500,000
3,704,000
$ 4,454,000
$ 8.254.000
Retrieved from:
Warren, C. S., Jonick, C. A., & Schneider, J. S., (2021). Accounting (28 ed.). Boston, MA: Cengage
Instructions
Determine the following measures for 2022, rounding to one decimal place,
including percentages, except for per-share amounts:
1. Working capital
2. Current ratio
3. Quick ratio
4. Accounts receivable turnover
5. Number of days' sales in receivables
6. Inventory turnover
7. Number of 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
Retrieved from:
Warren, C. S., Jonick, C. A., & Schneider, J. S., (2021). Accounting (28 ed.). Boston, MA: Cengage
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