1. Find the Number of days sales in inventory 2. Find the Return on total Assets Current assets:CashMarketable securitiesAccounts receivable (net)InventoriesPrepaid expensesMarshall, Inc.Comparative Balance SheetsDecember 31, 2022 and 20212022Total current assetsLong-term investmentsProperty, plant, and equipment (net)Total assetsCurrent liabilities:Long-term liabilities:Mortgage note payable, 6%Bonds payable, 4%Total liabilitiesTotal long-term liabilitiesPreferred 4% stock, $5 parCommon stock, $5 parRetained earningsAssets$ 1,050,000301,000585,000420,000108,000$ 2,464,000LiabilitiesTotal stockholders' equityTotal liabilities and stockholders' equity800,0005,760,000$9.024.000$ 880,000$ 200,0003,000,000$3,200,000$ 4,080,000Stockholders' Equity$ 250,000500,0004,194,000$ 4,944,000$9.024.0002021$ 950,000420,000500,000380,00020,000$ 2,270,000800,0005,184,000$ 8.254.000$ 800,000$03,000,000$3,000,000$ 3,800,000$ 250,000500,0003,704,000$ 4,454,000$ 8.254.000Retrieved from:Warren, C. S., Jonick, C. A., & Schneider, J. S., (2021). Accounting (28 ed.). Boston, MA: CengageInstructionsDetermine the following measures for 2022, rounding to one decimal place,including percentages, except for per-share amounts:1. Working capital2. Current ratio3. Quick ratio4. Accounts receivable turnover5. Number of days' sales in receivables6. Inventory turnover7. Number of days' sales in inventory8. Ratio of fixed assets to long-term liabilities9. Ratio of liabilities to stockholders' equity10. Times interest earned11. Asset turnover12. Return on total assets13. Return on stockholders' equity14. Return on common stockholders' equity15. Earnings per share on common stock16. Price-earnings ratio17. Dividends per share of common stock18. Dividend yieldRetrieved from:Warren, C. S., Jonick, C. A., & Schneider, J. S., (2021). Accounting (28 ed.). Boston, MA: Cengage Chapter 17 HomeworkPR 17-4A Measures of liquidity, solvency, and profitabilityThe comparative financial statements of Marshall, Inc. are as follows. Themarket price of Marshall, Inc. common stock was $82.60 on December 31,2022.Marshall, Inc.Comparative Retained Earnings StatementFor the Years Ended December 31, 2022 and 20212022Retained Earnings, January 1Net IncomeDividends:On preferred stockOn common stockRetained Earnings, December 31$3,704,000600,000(10,000)(100,000)$4.194.0002021$3,264,000550,000(10,000)(100,000)$3.704.000Retrieved from:Warren, C. S., Jonick, C. A., & Schneider, J. S., (2021). Accounting (28 ed.). Boston, MA: CengageMarshall, Inc.Comparative Income StatementFor the Years Ended December 31, 2022 and 20212022$10,850,0006.000.000$ 4,850,000$ 2,170,0001,627,500$ 3,797,500$ 1,052,500SalesCost of merchandise soldGross profitSelling expensesAdministrative expensesTotal operating expensesIncome from operationsOther revenue and expense:Other revenueOther expense (interest)Income before income tax expenseIncome tax expenseNet Income99,500(132,000)$ 1,020,000420,000$ 600.0002021$10,000,0005,450,000$ 4,550,000$ 2,000,0001,500,000$ 3,500,000$ 1,050,00020,000(120,000)$ 950,000400,000$ 550.000Retrieved from:Warren, C. S., Jonick, C. A., & Schneider, J. S., (2021). Accounting (28 ed.). Boston, MA: Cengage

NUMBER OF DAYS SALES IN INVENTORY Number of days sales in inventory is the average number of days…

Answered: Find the Number of days sales in…

Business

Accounting

Find the Number of days sales in inventory 2. Find the Return on total Assets

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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Question

1. Find the Number of days sales in inventory

2. Find the Return on total Assets

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

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

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