Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Determine the following measures for 20Y2, rounding to one decimal place including, percentage, except for per-share amounts.
5. Number of days sales in receivables
7. number of days sale in inventory
12.
14. return on common
17. dividends per share of common stock
18. dividend yield
i need help on these questions i have provided please please please

Transcribed Image Text:**Comparative Financial Analysis for Stargel Inc.**
**Overview:**
The financial statements for Stargel Inc. provide insight into their financial standing for the years ending on December 31, 20Y1 and 20Y2. The market price of Stargel's common stock was $119.70 on December 31, 20Y2.
**Retained Earnings Statement**
**For the Years Ended December 31, 20Y2 and 20Y1**
- **20Y2**
- Retained earnings, January 1: $5,375,000
- Net Income: $900,000
- Total: $6,275,000
- Dividends:
- Preferred stock dividends: $45,000
- Common stock dividends: $95,000
- Total dividends: $140,000
- Retained earnings, December 31: $6,135,000
- **20Y1**
- Retained earnings, January 1: $4,945,000
- Net Income: $925,000
- Total: $5,870,000
- Dividends:
- Preferred stock dividends: $45,000
- Common stock dividends: $95,000
- Total dividends: $140,000
- Retained earnings, December 31: $5,730,000
This statement reflects the company's ability to retain earnings after distributing dividends, showcasing its liquidity, solvency, and profitability throughout the two years presented.

Transcribed Image Text:Stargel Inc.
**Comparative Income Statement for the Years Ended December 31, 20Y2 and 20Y1**
| Item | 20Y2 | 20Y1 |
|---------------------------------------|-------------|-------------|
| Sales | $10,000,000 | $9,400,000 |
| Cost of goods sold | $5,350,000 | $4,950,000 |
| **Gross profit** | $4,650,000 | $4,450,000 |
| Selling expenses | $2,000,000 | $1,880,000 |
| Administrative expenses | $1,500,000 | $1,330,000 |
| **Total operating expenses** | $3,500,000 | $3,210,000 |
| **Income from operations** | $1,150,000 | $1,240,000 |
| Other revenue | $230,000 | $170,000 |
| Other expense (interest) | $(130,000) | $(110,000) |
| **Income before income tax** | $1,250,000 | $1,300,000 |
| Income tax expense | $1,130,000 | $1,150,000 |
| **Net income** | $900,000 | $925,000 |
---
**Stargel Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1**
**Assets**
| Item | 20Y2 | 20Y1 |
|----------------------------------------|-------------|-------------|
| Cash | $500,000 | $400,000 |
| Marketable securities | $1,010,000 | $1,000,000 |
| Accounts receivable (net) | $740,000 | $500,000 |
| Inventories | $1,190,000 | $950,000 |
| Prepaid expenses | $250,000 | $229,000 |
| **Total current assets** | $3,690,000 | $3,089,000 |
| Long-term investments | $2,350,000 | $2
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