Measures of liquidity, Solvency, and Profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 65 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 $1,173,375 $995,425 Net income 259,200 203,900 Total $1,432,575 $1,199,325 Dividends: On preferred stock $8,400 $8,400 On common stock 17,550 17,550 Total dividends $25,950 $25,950 Retained earnings, December 31 $1,406,625 $1,173,375 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales $1,622,790 $1,495,130 Cost of goods sold 611,010 562,130 Gross profit $1,011,780 $933,000 Selling expenses $341,930 $416,290 Administrative expenses 291,280 244,490 Total operating expenses $633,210 $660,780 Income from operations $378,570 $272,220 Other revenue 19,930 17,380 $398,500 $289,600 Other expense (interest) 104,000 57,600 Income before income tax $294,500 $232,000 Income tax expense 35,300 28,100 Net income $259,200 $203,900 Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 20Y2 20Y1 Assets Current assets Cash $329,810 $258,110 Marketable securities 499,170 427,720 Accounts receivable (net) 292,000 277,400 Inventories 219,000 175,200 Prepaid expenses 62,398 51,620 Total current assets $1,402,378 $1,190,050 Long-term investments 549,210 191,506 Property, plant, and equipment (net) 1,690,000 1,521,000 Total assets $3,641,588 $2,902,556 Liabilities Current liabilities $424,963 $499,181 Long-term liabilities: Mortgage note payable, 8% $580,000 $0 Bonds payable, 8% 720,000 720,000 Total long-term liabilities $1,300,000 $720,000 Total liabilities $1,724,963 $1,219,181 Stockholders' Equity Preferred $0.70 stock, $20 par $240,000 $240,000 Common stock, $10 par 270,000 270,000 Retained earnings 1,406,625 1,173,375 Total stockholders' equity $1,916,625 $1,683,375 Total liabilities and stockholders' equity $3,641,588 $2,902,556 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. find times interest earned
Measures of liquidity, Solvency, and Profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 65 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 $1,173,375 $995,425 Net income 259,200 203,900 Total $1,432,575 $1,199,325 Dividends: On preferred stock $8,400 $8,400 On common stock 17,550 17,550 Total dividends $25,950 $25,950 Retained earnings, December 31 $1,406,625 $1,173,375 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales $1,622,790 $1,495,130 Cost of goods sold 611,010 562,130 Gross profit $1,011,780 $933,000 Selling expenses $341,930 $416,290 Administrative expenses 291,280 244,490 Total operating expenses $633,210 $660,780 Income from operations $378,570 $272,220 Other revenue 19,930 17,380 $398,500 $289,600 Other expense (interest) 104,000 57,600 Income before income tax $294,500 $232,000 Income tax expense 35,300 28,100 Net income $259,200 $203,900 Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 20Y2 20Y1 Assets Current assets Cash $329,810 $258,110 Marketable securities 499,170 427,720 Accounts receivable (net) 292,000 277,400 Inventories 219,000 175,200 Prepaid expenses 62,398 51,620 Total current assets $1,402,378 $1,190,050 Long-term investments 549,210 191,506 Property, plant, and equipment (net) 1,690,000 1,521,000 Total assets $3,641,588 $2,902,556 Liabilities Current liabilities $424,963 $499,181 Long-term liabilities: Mortgage note payable, 8% $580,000 $0 Bonds payable, 8% 720,000 720,000 Total long-term liabilities $1,300,000 $720,000 Total liabilities $1,724,963 $1,219,181 Stockholders' Equity Preferred $0.70 stock, $20 par $240,000 $240,000 Common stock, $10 par 270,000 270,000 Retained earnings 1,406,625 1,173,375 Total stockholders' equity $1,916,625 $1,683,375 Total liabilities and stockholders' equity $3,641,588 $2,902,556 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. find times interest earned
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Measures of liquidity, Solvency, and Profitability
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 65 on December 31, 20Y2.
Marshall Inc. | ||||||
Comparative |
||||||
For the Years Ended December 31, 20Y2 and 20Y1 | ||||||
20Y2 | 20Y1 | |||||
Retained earnings, January 1 | $1,173,375 | $995,425 | ||||
Net income | 259,200 | 203,900 | ||||
Total | $1,432,575 | $1,199,325 | ||||
Dividends: | ||||||
On |
$8,400 | $8,400 | ||||
On common stock | 17,550 | 17,550 | ||||
Total dividends | $25,950 | $25,950 | ||||
Retained earnings, December 31 | $1,406,625 | $1,173,375 |
Marshall Inc. | ||||
Comparative Income Statement | ||||
For the Years Ended December 31, 20Y2 and 20Y1 | ||||
20Y2 | 20Y1 | |||
Sales | $1,622,790 | $1,495,130 | ||
Cost of goods sold | 611,010 | 562,130 | ||
Gross profit | $1,011,780 | $933,000 | ||
Selling expenses | $341,930 | $416,290 | ||
Administrative expenses | 291,280 | 244,490 | ||
Total operating expenses | $633,210 | $660,780 | ||
Income from operations | $378,570 | $272,220 | ||
Other revenue | 19,930 | 17,380 | ||
$398,500 | $289,600 | |||
Other expense (interest) | 104,000 | 57,600 | ||
Income before income tax | $294,500 | $232,000 | ||
Income tax expense | 35,300 | 28,100 | ||
Net income | $259,200 | $203,900 |
Marshall Inc. | ||||||
Comparative Balance Sheet | ||||||
December 31, 20Y2 and 20Y1 | ||||||
20Y2 | 20Y1 | |||||
Assets | ||||||
Current assets | ||||||
Cash | $329,810 | $258,110 | ||||
Marketable securities | 499,170 | 427,720 | ||||
292,000 | 277,400 | |||||
Inventories | 219,000 | 175,200 | ||||
Prepaid expenses | 62,398 | 51,620 | ||||
Total current assets | $1,402,378 | $1,190,050 | ||||
Long-term investments | 549,210 | 191,506 | ||||
Property, plant, and equipment (net) | 1,690,000 | 1,521,000 | ||||
Total assets | $3,641,588 | $2,902,556 | ||||
Liabilities | ||||||
Current liabilities | $424,963 | $499,181 | ||||
Long-term liabilities: | ||||||
Mortgage note payable, 8% | $580,000 | $0 | ||||
Bonds payable, 8% | 720,000 | 720,000 | ||||
Total long-term liabilities | $1,300,000 | $720,000 | ||||
Total liabilities | $1,724,963 | $1,219,181 | ||||
Preferred $0.70 stock, $20 par | $240,000 | $240,000 | ||||
Common stock, $10 par | 270,000 | 270,000 | ||||
Retained earnings | 1,406,625 | 1,173,375 | ||||
Total stockholders' equity | $1,916,625 | $1,683,375 | ||||
Total liabilities and stockholders' equity | $3,641,588 | $2,902,556 |
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.
find times interest earned
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