Required: Determine the following measures for 2012, 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 requi Assume 365 days a year. 1. Working capital 2. Current ratio 3. Quick ratio
Required: Determine the following measures for 2012, 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 requi Assume 365 days a year. 1. Working capital 2. Current ratio 3. Quick ratio
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Current assets:
Cash
Marketable securities
Accounts receivable (net)
Inventories
Prepaid expenses
Total current assets
Current liabilities
Long-term liabilities:
Mortgage note payable, 8%
Bonds payable, 8%
Total long-term liabilities
Long-term investments
Property, plant, and equipment (net)
Total assets
Total liabilities
Required:
1. Working capital
2. Current ratio
3. Quick ratio
4. Accounts receivable turnover
5. Number of days' sales in receivables
Marshall Inc.
Comparative Balance Sheet
December 31, 20Y2 and 20Y1
Preferred $0.70 stock, $40 par
Common stock, $10 par
Retained earnings
Total stockholders' equity
Total liabilities and stockholders' equity
6. Inventory tumover
7. Number of days' sales in inventory
Assets
8. Ratio of fixed assets to long-term liabilities
9. Ratio of liabilities to stockholders' equity
10. Times interest eamed
11. Asset turnover
12. Return on total assets
13. Return on stockholders' equity
14. Return on common stockholders' equity
15 Earings per share on common stock
16. Price-earnings ratio
17. Dividends per share of common stock
18. Dividend yield
Liabilities
Stockholders' Equity
days
days
%6
%
M
20Y2
%
$1,080,330
1,635,090
970,900
730,000
204,385
$4,620,705
2,203,380
5,280,000
$12,104,085
Determine the following measures for 2012, 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.
$1,540,235
$2,160,000
2,640,000
$4,800,000
$6,340,235
$720,000
820,000
4,223,850
$5,763,850
$12,104,085
20Y1
$831,590
1,378,060
912,500
569,400
166,320
$3,857,870
799,559
4,752,000
$9,409,429
$1,733,279
$0
2,640,000
$2,640,000
$4,373,279
$720,000
820,000
3,496,150
$5,036,150
$9,409,429](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F00747272-9455-4a9a-b3aa-3c0372aa08da%2F6a6370a2-8103-4cfb-bd04-e1398f68f4a2%2Fsxq9wta_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Current assets:
Cash
Marketable securities
Accounts receivable (net)
Inventories
Prepaid expenses
Total current assets
Current liabilities
Long-term liabilities:
Mortgage note payable, 8%
Bonds payable, 8%
Total long-term liabilities
Long-term investments
Property, plant, and equipment (net)
Total assets
Total liabilities
Required:
1. Working capital
2. Current ratio
3. Quick ratio
4. Accounts receivable turnover
5. Number of days' sales in receivables
Marshall Inc.
Comparative Balance Sheet
December 31, 20Y2 and 20Y1
Preferred $0.70 stock, $40 par
Common stock, $10 par
Retained earnings
Total stockholders' equity
Total liabilities and stockholders' equity
6. Inventory tumover
7. Number of days' sales in inventory
Assets
8. Ratio of fixed assets to long-term liabilities
9. Ratio of liabilities to stockholders' equity
10. Times interest eamed
11. Asset turnover
12. Return on total assets
13. Return on stockholders' equity
14. Return on common stockholders' equity
15 Earings per share on common stock
16. Price-earnings ratio
17. Dividends per share of common stock
18. Dividend yield
Liabilities
Stockholders' Equity
days
days
%6
%
M
20Y2
%
$1,080,330
1,635,090
970,900
730,000
204,385
$4,620,705
2,203,380
5,280,000
$12,104,085
Determine the following measures for 2012, 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.
$1,540,235
$2,160,000
2,640,000
$4,800,000
$6,340,235
$720,000
820,000
4,223,850
$5,763,850
$12,104,085
20Y1
$831,590
1,378,060
912,500
569,400
166,320
$3,857,870
799,559
4,752,000
$9,409,429
$1,733,279
$0
2,640,000
$2,640,000
$4,373,279
$720,000
820,000
3,496,150
$5,036,150
$9,409,429
![Measures of liquidity, Solvency, and Profitability
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $62 on December 31, 20Y2.
Marshall Inc.
Comparative Retained Earnings Statement
For the Years Ended December 31, 20Y2 and 20Y1
Retained earnings, January 1
Net income
Dividends:
On preferred stock
On common stock
Retained earnings, December 31
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
20Y2
$3,496,150
810,000
(12,600)
(69,700)
$4,223,850
20Y1
$2,970,150
Marshall Inc.
Comparative Income Statement
For the Years Ended December 31, 20Y2 and 20Y1
608,300
(12,600)
(69,700)
$3,496,150
20Y2
$5,273,520
1,819,160
$3,454,360
$1,196,150
1,018,940
$2,215,090
$1,239,270
65,230
(384,000)
$920,500
110,500
$810,000
20Y1
$4,858,760
1,673,630
$3,185,130
$1,472,350
864,710
$2,337,060
$848,070
54,130
(211,200)
$691,000
82,700
$608,300](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F00747272-9455-4a9a-b3aa-3c0372aa08da%2F6a6370a2-8103-4cfb-bd04-e1398f68f4a2%2Fl1nrc2_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Measures of liquidity, Solvency, and Profitability
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $62 on December 31, 20Y2.
Marshall Inc.
Comparative Retained Earnings Statement
For the Years Ended December 31, 20Y2 and 20Y1
Retained earnings, January 1
Net income
Dividends:
On preferred stock
On common stock
Retained earnings, December 31
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
20Y2
$3,496,150
810,000
(12,600)
(69,700)
$4,223,850
20Y1
$2,970,150
Marshall Inc.
Comparative Income Statement
For the Years Ended December 31, 20Y2 and 20Y1
608,300
(12,600)
(69,700)
$3,496,150
20Y2
$5,273,520
1,819,160
$3,454,360
$1,196,150
1,018,940
$2,215,090
$1,239,270
65,230
(384,000)
$920,500
110,500
$810,000
20Y1
$4,858,760
1,673,630
$3,185,130
$1,472,350
864,710
$2,337,060
$848,070
54,130
(211,200)
$691,000
82,700
$608,300
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