Measures of liquidity, Solvency, and Profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 55 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 $ 1,806,225 $ 1,533,375 Net income 408,800 314,100 Total $2,215,025 $ 1,847,475 Dividends: On preferred stock $ 13,300 $ 13,300 On common stock 27,950 27,950 Total dividends $ 41,250 $ 41,250 Retained earnings, December 31 $ 2,173,775 $ 1,806,225 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales $ 2,330,160 $ 2,146,930 Cost of goods sold 797,160 733,390 Gross profit $ 1,533,000 $ 1,413,540 Selling expenses $ 515,660 $ 632,210 Administrative expenses 439,270 371,300 Total operating expenses $954,930 $1,003,510 Income from operations $ 578,070 $ 410,030 Other revenue 30,430 26,170 $ 608,500 $ 436,200 Other expense (interest) 144,000 79,200 Income before income tax $ 464,500 $ 357,000 Income tax expense 55,700 42,900 Net income $ 408,800 $ 314,100 Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 20Y2 20Y1 Assets Current assets Cash $ 460,270 $ 444,200 Marketable securities 696,620 736,110 Accounts receivable (net) 430,700 401,500 Inventories 321,200 248,200 Prepaid expenses 87,078 88,840 Total current assets $ 1,995,868 $ 1,918,850 Long-term investments 1,034,927 655,264 Property, plant, and equipment (net) 2,340,000 2,106,000 Total assets $ 5,370,795 $ 4,680,114 Liabilities Current liabilities $ 587,020 $ 1,073,889 Long-term liabilities: Mortgage note payable, 8% $ 810,000 $ 0 Bonds payable, 8% 990,000 990,000 Total long-term liabilities $ 1,800,000 $ 990,000 Total liabilities $ 2,387,020 $ 2,063,889 Stockholders' Equity Preferred $0.70 stock, $20 par $ 380,000 $ 380,000 Common stock, $10 par 430,000 430,000 Retained earnings 2,173,775 1,806,225 Total stockholders' equity $ 2,983,775 $ 2,616,225 Total liabilities and stockholders' equity $ 5,370,795 $ 4,680,114 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. 1. Working capital $ 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover 5. Number of days' sales in receivables days 6. Inventory turnover 7. Number of days' sales in inventory days 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 % How do I solve this?
Measures of liquidity, Solvency, and Profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 55 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 $ 1,806,225 $ 1,533,375 Net income 408,800 314,100 Total $2,215,025 $ 1,847,475 Dividends: On preferred stock $ 13,300 $ 13,300 On common stock 27,950 27,950 Total dividends $ 41,250 $ 41,250 Retained earnings, December 31 $ 2,173,775 $ 1,806,225 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales $ 2,330,160 $ 2,146,930 Cost of goods sold 797,160 733,390 Gross profit $ 1,533,000 $ 1,413,540 Selling expenses $ 515,660 $ 632,210 Administrative expenses 439,270 371,300 Total operating expenses $954,930 $1,003,510 Income from operations $ 578,070 $ 410,030 Other revenue 30,430 26,170 $ 608,500 $ 436,200 Other expense (interest) 144,000 79,200 Income before income tax $ 464,500 $ 357,000 Income tax expense 55,700 42,900 Net income $ 408,800 $ 314,100 Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 20Y2 20Y1 Assets Current assets Cash $ 460,270 $ 444,200 Marketable securities 696,620 736,110 Accounts receivable (net) 430,700 401,500 Inventories 321,200 248,200 Prepaid expenses 87,078 88,840 Total current assets $ 1,995,868 $ 1,918,850 Long-term investments 1,034,927 655,264 Property, plant, and equipment (net) 2,340,000 2,106,000 Total assets $ 5,370,795 $ 4,680,114 Liabilities Current liabilities $ 587,020 $ 1,073,889 Long-term liabilities: Mortgage note payable, 8% $ 810,000 $ 0 Bonds payable, 8% 990,000 990,000 Total long-term liabilities $ 1,800,000 $ 990,000 Total liabilities $ 2,387,020 $ 2,063,889 Stockholders' Equity Preferred $0.70 stock, $20 par $ 380,000 $ 380,000 Common stock, $10 par 430,000 430,000 Retained earnings 2,173,775 1,806,225 Total stockholders' equity $ 2,983,775 $ 2,616,225 Total liabilities and stockholders' equity $ 5,370,795 $ 4,680,114 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. 1. Working capital $ 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover 5. Number of days' sales in receivables days 6. Inventory turnover 7. Number of days' sales in inventory days 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 % How do I solve this?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
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 $ 55 on December 31, 20Y2.
Marshall Inc. | ||||||
Comparative |
||||||
For the Years Ended December 31, 20Y2 and 20Y1 | ||||||
20Y2 | 20Y1 | |||||
Retained earnings, January 1 | $ 1,806,225 | $ 1,533,375 | ||||
Net income | 408,800 | 314,100 | ||||
Total | $2,215,025 | $ 1,847,475 | ||||
Dividends: | ||||||
On |
$ 13,300 | $ 13,300 | ||||
On common stock | 27,950 | 27,950 | ||||
Total dividends | $ 41,250 | $ 41,250 | ||||
Retained earnings, December 31 | $ 2,173,775 | $ 1,806,225 |
Marshall Inc. | ||||
Comparative Income Statement | ||||
For the Years Ended December 31, 20Y2 and 20Y1 | ||||
20Y2 | 20Y1 | |||
Sales | $ 2,330,160 | $ 2,146,930 | ||
Cost of goods sold | 797,160 | 733,390 | ||
Gross profit | $ 1,533,000 | $ 1,413,540 | ||
Selling expenses | $ 515,660 | $ 632,210 | ||
Administrative expenses | 439,270 | 371,300 | ||
Total operating expenses | $954,930 | $1,003,510 | ||
Income from operations | $ 578,070 | $ 410,030 | ||
Other revenue | 30,430 | 26,170 | ||
$ 608,500 | $ 436,200 | |||
Other expense (interest) | 144,000 | 79,200 | ||
Income before income tax | $ 464,500 | $ 357,000 | ||
Income tax expense | 55,700 | 42,900 | ||
Net income | $ 408,800 | $ 314,100 |
Marshall Inc. | ||||||
Comparative Balance Sheet | ||||||
December 31, 20Y2 and 20Y1 | ||||||
20Y2 | 20Y1 | |||||
Assets | ||||||
Current assets | ||||||
Cash | $ 460,270 | $ 444,200 | ||||
Marketable securities | 696,620 | 736,110 | ||||
430,700 | 401,500 | |||||
Inventories | 321,200 | 248,200 | ||||
Prepaid expenses | 87,078 | 88,840 | ||||
Total current assets | $ 1,995,868 | $ 1,918,850 | ||||
Long-term investments | 1,034,927 | 655,264 | ||||
Property, plant, and equipment (net) | 2,340,000 | 2,106,000 | ||||
Total assets | $ 5,370,795 | $ 4,680,114 | ||||
Liabilities | ||||||
Current liabilities | $ 587,020 | $ 1,073,889 | ||||
Long-term liabilities: | ||||||
Mortgage note payable, 8% | $ 810,000 | $ 0 | ||||
Bonds payable, 8% | 990,000 | 990,000 | ||||
Total long-term liabilities | $ 1,800,000 | $ 990,000 | ||||
Total liabilities | $ 2,387,020 | $ 2,063,889 | ||||
Preferred $0.70 stock, $20 par | $ 380,000 | $ 380,000 | ||||
Common stock, $10 par | 430,000 | 430,000 | ||||
Retained earnings | 2,173,775 | 1,806,225 | ||||
Total stockholders' equity | $ 2,983,775 | $ 2,616,225 | ||||
Total liabilities and stockholders' equity | $ 5,370,795 | $ 4,680,114 |
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.
1. |
$ | |
2. |
||
3. Quick ratio | ||
4. Accounts receivable turnover | ||
5. Number of days' sales in receivables | days | |
6. Inventory turnover | ||
7. Number of days' sales in inventory | days | |
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 | % |
How do I solve this?
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