The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 66 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 $2,208,550 $1,855,250 Net income 489,600 380,000 Dividends: On preferred stock (6,300) (6,300) On common stock (20,400) (20,400) Retained earnings, December 31 $2,671,450 $2,208,550 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales $3,510,205 $3,234,090 Cost of merchandise sold 1,164,350 1,071,200 Gross profit $2,345,855 $2,162,890 Selling expenses $858,210 $1,028,620 Administrative expenses 731,065 604,110 Total operating expenses $1,589,275 $1,632,730 Income from operations $756,580 $530,160 Other revenue and expense: Other revenue 39,820 33,840 Other expense (interest) (240,000) (132,000) Income before income tax expense $556,400 $432,000 Income tax expense 66,800 52,000 Net income $489,600 $380,000 Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 20Y2 20Y1 Assets Current assets: Cash $856,850 $484,770 Marketable securities 1,296,860 803,340 Accounts receivable (net) 613,200 576,700 Inventories 452,600 350,400 Prepaid expenses 162,113 96,950 Total current assets $3,381,623 $2,312,160 Long-term investments 944,422 357,250 Property, plant, and equipment (net) 3,300,000 2,970,000 Total assets $7,626,045 $5,639,410 Liabilities Current liabilities $994,595 $820,860 Long-term liabilities: Mortgage note payable, 8% $1,350,000 $0 Bonds payable, 8% 1,650,000 1,650,000 Total long-term liabilities $3,000,000 $1,650,000 Total liabilities $3,994,595 $2,470,860 Stockholders' Equity Preferred $0.70 stock, $50 par $450,000 $450,000 Common stock, $10 par 510,000 510,000 Retained earnings 2,671,450 2,208,550 Total stockholders' equity $3,631,450 $3,168,550 Total liabilities and stockholders' equity $7,626,045 $5,639,410 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. 7. Number of days' sales in inventory fill in the blank 7 days 8. Ratio of fixed assets to long-term liabilities fill in the blank 8 9. Ratio of liabilities to stockholders' equity fill in the blank 9
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 66 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 $2,208,550 $1,855,250 Net income 489,600 380,000 Dividends: On preferred stock (6,300) (6,300) On common stock (20,400) (20,400) Retained earnings, December 31 $2,671,450 $2,208,550 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales $3,510,205 $3,234,090 Cost of merchandise sold 1,164,350 1,071,200 Gross profit $2,345,855 $2,162,890 Selling expenses $858,210 $1,028,620 Administrative expenses 731,065 604,110 Total operating expenses $1,589,275 $1,632,730 Income from operations $756,580 $530,160 Other revenue and expense: Other revenue 39,820 33,840 Other expense (interest) (240,000) (132,000) Income before income tax expense $556,400 $432,000 Income tax expense 66,800 52,000 Net income $489,600 $380,000 Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 20Y2 20Y1 Assets Current assets: Cash $856,850 $484,770 Marketable securities 1,296,860 803,340 Accounts receivable (net) 613,200 576,700 Inventories 452,600 350,400 Prepaid expenses 162,113 96,950 Total current assets $3,381,623 $2,312,160 Long-term investments 944,422 357,250 Property, plant, and equipment (net) 3,300,000 2,970,000 Total assets $7,626,045 $5,639,410 Liabilities Current liabilities $994,595 $820,860 Long-term liabilities: Mortgage note payable, 8% $1,350,000 $0 Bonds payable, 8% 1,650,000 1,650,000 Total long-term liabilities $3,000,000 $1,650,000 Total liabilities $3,994,595 $2,470,860 Stockholders' Equity Preferred $0.70 stock, $50 par $450,000 $450,000 Common stock, $10 par 510,000 510,000 Retained earnings 2,671,450 2,208,550 Total stockholders' equity $3,631,450 $3,168,550 Total liabilities and stockholders' equity $7,626,045 $5,639,410 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. 7. Number of days' sales in inventory fill in the blank 7 days 8. Ratio of fixed assets to long-term liabilities fill in the blank 8 9. Ratio of liabilities to stockholders' equity fill in the blank 9
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 66 on December 31, 20Y2.
Marshall Inc. | |||||
Comparative |
|||||
For the Years Ended December 31, 20Y2 and 20Y1 | |||||
20Y2 | 20Y1 | ||||
Retained earnings, January 1 | $2,208,550 | $1,855,250 | |||
Net income | 489,600 | 380,000 | |||
Dividends: | |||||
On |
(6,300) | (6,300) | |||
On common stock | (20,400) | (20,400) | |||
Retained earnings, December 31 | $2,671,450 | $2,208,550 |
Marshall Inc. | ||||
Comparative Income Statement | ||||
For the Years Ended December 31, 20Y2 and 20Y1 | ||||
20Y2 | 20Y1 | |||
Sales | $3,510,205 | $3,234,090 | ||
Cost of merchandise sold | 1,164,350 | 1,071,200 | ||
Gross profit | $2,345,855 | $2,162,890 | ||
Selling expenses | $858,210 | $1,028,620 | ||
Administrative expenses | 731,065 | 604,110 | ||
Total operating expenses | $1,589,275 | $1,632,730 | ||
Income from operations | $756,580 | $530,160 | ||
Other revenue and expense: | ||||
Other revenue | 39,820 | 33,840 | ||
Other expense (interest) | (240,000) | (132,000) | ||
Income before income tax expense | $556,400 | $432,000 | ||
Income tax expense | 66,800 | 52,000 | ||
Net income | $489,600 | $380,000 |
Marshall Inc. | ||||||
Comparative Balance Sheet | ||||||
December 31, 20Y2 and 20Y1 | ||||||
20Y2 | 20Y1 | |||||
Assets | ||||||
Current assets: | ||||||
Cash | $856,850 | $484,770 | ||||
Marketable securities | 1,296,860 | 803,340 | ||||
Accounts receivable (net) | 613,200 | 576,700 | ||||
Inventories | 452,600 | 350,400 | ||||
Prepaid expenses | 162,113 | 96,950 | ||||
Total current assets | $3,381,623 | $2,312,160 | ||||
Long-term investments | 944,422 | 357,250 | ||||
Property, plant, and equipment (net) | 3,300,000 | 2,970,000 | ||||
Total assets | $7,626,045 | $5,639,410 | ||||
Liabilities | ||||||
Current liabilities | $994,595 | $820,860 | ||||
Long-term liabilities: | ||||||
Mortgage note payable, 8% | $1,350,000 | $0 | ||||
Bonds payable, 8% | 1,650,000 | 1,650,000 | ||||
Total long-term liabilities | $3,000,000 | $1,650,000 | ||||
Total liabilities | $3,994,595 | $2,470,860 | ||||
Preferred $0.70 stock, $50 par | $450,000 | $450,000 | ||||
Common stock, $10 par | 510,000 | 510,000 | ||||
Retained earnings | 2,671,450 | 2,208,550 | ||||
Total stockholders' equity | $3,631,450 | $3,168,550 | ||||
Total liabilities and stockholders' equity | $7,626,045 | $5,639,410 |
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.
7. Number of days' sales in inventory | fill in the blank 7 | days |
8. Ratio of fixed assets to long-term liabilities | fill in the blank 8 | |
9. Ratio of liabilities to stockholders' equity | fill in the blank 9 |
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