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 $ 60 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 $ 1,024,550 $ 869,250 Net income 233,600 178,000 Total $ 1,258,150 $ 1,047,250 Dividends On preferred stock $ 7,700 $ 7,700 On common stock 15,000 15,000 Total dividends $ 22,700 $ 22,700 Retained earnings, December 31 $ 1,235,450 $ 1,024,550 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales $ 1,456,350 $ 1,341,770 Cost of goods sold 520,490 478,850 Gross profit $ 935,860 $ 862,920 Selling expenses $ 319,920 $ 392,750 Administrative expenses 272,520 230,660 Total operating expenses 592,440 623,410 Income from operations $ 343,420 $ 239,510 Other income 18,080 15,290 $ 361,500 $ 254,800 Other expense (interest) 96,000 52,800 Income before income tax $ 265,500 $ 202,000 Income tax expense 31,900 24,000 Net income $ 233,600 $ 178,000 Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and
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 $ 60 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 $ 1,024,550 $ 869,250 Net income 233,600 178,000 Total $ 1,258,150 $ 1,047,250 Dividends On preferred stock $ 7,700 $ 7,700 On common stock 15,000 15,000 Total dividends $ 22,700 $ 22,700 Retained earnings, December 31 $ 1,235,450 $ 1,024,550 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales $ 1,456,350 $ 1,341,770 Cost of goods sold 520,490 478,850 Gross profit $ 935,860 $ 862,920 Selling expenses $ 319,920 $ 392,750 Administrative expenses 272,520 230,660 Total operating expenses 592,440 623,410 Income from operations $ 343,420 $ 239,510 Other income 18,080 15,290 $ 361,500 $ 254,800 Other expense (interest) 96,000 52,800 Income before income tax $ 265,500 $ 202,000 Income tax expense 31,900 24,000 Net income $ 233,600 $ 178,000 Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter17: Financial Statement Analysis
Section: Chapter Questions
Problem 4PA: Measures of liquidity, solvency, and profitability The comparative financial statements of Marshall...
Related questions
Question
Practice Pack
-
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 $ 60 on December 31, 20Y2.
Marshall Inc. Comparative Retained Earnings StatementFor the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Retained earnings, January 1 $ 1,024,550 $ 869,250 Net income 233,600 178,000 Total $ 1,258,150 $ 1,047,250 Dividends On preferred stock $ 7,700 $ 7,700 On common stock 15,000 15,000 Total dividends $ 22,700 $ 22,700 Retained earnings, December 31 $ 1,235,450 $ 1,024,550
Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales $ 1,456,350 $ 1,341,770 Cost of goods sold 520,490 478,850 Gross profit $ 935,860 $ 862,920 Selling expenses $ 319,920 $ 392,750 Administrative expenses 272,520 230,660 Total operating expenses 592,440 623,410 Income from operations $ 343,420 $ 239,510 Other income 18,080 15,290 $ 361,500 $ 254,800 Other expense (interest) 96,000 52,800 Income before income tax $ 265,500 $ 202,000 Income tax expense 31,900 24,000 Net income $ 233,600 $ 178,000
Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 Dec. 31, 20Y2 Dec. 31, 20Y1 Assets Current assets Cash $ 229,070 $ 241,640 Marketable securities 346,690 400,430 Accounts receivable (net)262,800 248,200 Inventories 189,800 146,000 Prepaid expenses 43,336 48,330 Total current assets $ 1,071,696 $ 1,084,600 Long-term investments 608,659 156,759 Property, plant, and equipment (net) 1,560,000 1,404,000 Total assets $ 3,240,355 $ 2,645,359 Liabilities Current liabilities $ 334,905 $ 490,809 Long-term liabilities Mortgage note payable, 8 % $ 540,000 $ 0 Bonds payable, 8 % 660,000 660,000 Total long-term liabilities $ 1,200,000 $ 660,000 Total liabilities $ 1,534,905 $ 1,150,809 Stockholders' Equity Preferred $ 0.70 stock, $ 20 par $ 220,000 $ 220,000 Common stock, $ 10 par 250,000 250,000 Retained earnings 1,235,450 1,024,550 Total stockholders' equity $ 1,705,450 $ 1,494,550 Total liabilities and stockholders' equity $ 3,240,355 $ 2,645,359 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 %
Check My Work
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Includes step-by-step video
Trending now
This is a popular solution!
Learn your way
Includes step-by-step video
Step by step
Solved in 2 steps with 1 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781337272124/9781337272124_smallCoverImage.gif)
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
![Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
![Financial And Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337902663/9781337902663_smallCoverImage.jpg)
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
![Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781337272124/9781337272124_smallCoverImage.gif)
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
![Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
![Financial And Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337902663/9781337902663_smallCoverImage.jpg)
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
![Survey of Accounting (Accounting I)](https://www.bartleby.com/isbn_cover_images/9781305961883/9781305961883_smallCoverImage.gif)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
![Managerial Accounting: The Cornerstone of Busines…](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning