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 20Y2 20Y1 Retained earnings, January 1 $1,808,800 $1,544,500 Net income 414,400 316,300 Total $2,223,200 $1,860,800 Dividends: On preferred stock $13,300 $13,300 On common stock 38,700 38,700 Total dividends $52,000 $52,000 Retained earnings, December 31 $2,171,200 $1,808,800 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales $2,413,380 $2,223,550 Cost of goods sold 825,630 759,580 Gross profit $1,587,750 $1,463,970 Selling expenses $541,940 $662,800 Administrative expenses 461,660 389,260 Total operating expenses $1,003,600 $1,052,060 Income from operations $584,150 $411,910 Other revenue 30,750 26,290 $614,900 $438,200 Other expense (interest) 144,000 79,200 Income before income tax $470,900 $359,000 Income tax expense 56,500 42,700 Net income $414,400 $316,300 Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 20Y2 20Y1 Assets Current assets Cash $414,390 $420,800 Marketable securities 627,180 697,320 Accounts receivable (net) 430,700 401,500 Inventories 321,200 248,200 Prepaid expenses 78,402 84,160 Total current assets $1,871,872 $1,851,980 Long-term investments 1,154,288 559,046 Property, plant, and equipment (net) 2,340,000 2,106,000 Total assets $5,366,160 $4,517,026 Liabilities Current liabilities $584,960 $908,226 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 $2,384,960 $1,898,226 Stockholders' Equity Preferred $0.70 stock, $20 par $380,000 $380,000 Common stock, $10 par 430,000 430,000 Retained earnings 2,171,200 1,808,800 Total stockholders' equity $2,981,200 $2,618,800 Total liabilities and stockholders' equity $5,366,160 $4,517,026 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
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 20Y2 20Y1 Retained earnings, January 1 $1,808,800 $1,544,500 Net income 414,400 316,300 Total $2,223,200 $1,860,800 Dividends: On preferred stock $13,300 $13,300 On common stock 38,700 38,700 Total dividends $52,000 $52,000 Retained earnings, December 31 $2,171,200 $1,808,800 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales $2,413,380 $2,223,550 Cost of goods sold 825,630 759,580 Gross profit $1,587,750 $1,463,970 Selling expenses $541,940 $662,800 Administrative expenses 461,660 389,260 Total operating expenses $1,003,600 $1,052,060 Income from operations $584,150 $411,910 Other revenue 30,750 26,290 $614,900 $438,200 Other expense (interest) 144,000 79,200 Income before income tax $470,900 $359,000 Income tax expense 56,500 42,700 Net income $414,400 $316,300 Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 20Y2 20Y1 Assets Current assets Cash $414,390 $420,800 Marketable securities 627,180 697,320 Accounts receivable (net) 430,700 401,500 Inventories 321,200 248,200 Prepaid expenses 78,402 84,160 Total current assets $1,871,872 $1,851,980 Long-term investments 1,154,288 559,046 Property, plant, and equipment (net) 2,340,000 2,106,000 Total assets $5,366,160 $4,517,026 Liabilities Current liabilities $584,960 $908,226 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 $2,384,960 $1,898,226 Stockholders' Equity Preferred $0.70 stock, $20 par $380,000 $380,000 Common stock, $10 par 430,000 430,000 Retained earnings 2,171,200 1,808,800 Total stockholders' equity $2,981,200 $2,618,800 Total liabilities and stockholders' equity $5,366,160 $4,517,026 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Practice Pack
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 |
||||||
For the Years Ended December 31, 20Y2 and 20Y1 | ||||||
20Y2 | 20Y1 | |||||
Retained earnings, January 1 | $1,808,800 | $1,544,500 | ||||
Net income | 414,400 | 316,300 | ||||
Total | $2,223,200 | $1,860,800 | ||||
Dividends: | ||||||
On |
$13,300 | $13,300 | ||||
On common stock | 38,700 | 38,700 | ||||
Total dividends | $52,000 | $52,000 | ||||
Retained earnings, December 31 | $2,171,200 | $1,808,800 |
Marshall Inc. | ||||
Comparative Income Statement | ||||
For the Years Ended December 31, 20Y2 and 20Y1 | ||||
20Y2 | 20Y1 | |||
Sales | $2,413,380 | $2,223,550 | ||
Cost of goods sold | 825,630 | 759,580 | ||
Gross profit | $1,587,750 | $1,463,970 | ||
Selling expenses | $541,940 | $662,800 | ||
Administrative expenses | 461,660 | 389,260 | ||
Total operating expenses | $1,003,600 | $1,052,060 | ||
Income from operations | $584,150 | $411,910 | ||
Other revenue | 30,750 | 26,290 | ||
$614,900 | $438,200 | |||
Other expense (interest) | 144,000 | 79,200 | ||
Income before income tax | $470,900 | $359,000 | ||
Income tax expense | 56,500 | 42,700 | ||
Net income | $414,400 | $316,300 |
Marshall Inc. | ||||||
Comparative Balance Sheet | ||||||
December 31, 20Y2 and 20Y1 | ||||||
20Y2 | 20Y1 | |||||
Assets | ||||||
Current assets | ||||||
Cash | $414,390 | $420,800 | ||||
Marketable securities | 627,180 | 697,320 | ||||
430,700 | 401,500 | |||||
Inventories | 321,200 | 248,200 | ||||
Prepaid expenses | 78,402 | 84,160 | ||||
Total current assets | $1,871,872 | $1,851,980 | ||||
Long-term investments | 1,154,288 | 559,046 | ||||
Property, plant, and equipment (net) | 2,340,000 | 2,106,000 | ||||
Total assets | $5,366,160 | $4,517,026 | ||||
Liabilities | ||||||
Current liabilities | $584,960 | $908,226 | ||||
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 | $2,384,960 | $1,898,226 | ||||
Preferred $0.70 stock, $20 par | $380,000 | $380,000 | ||||
Common stock, $10 par | 430,000 | 430,000 | ||||
Retained earnings | 2,171,200 | 1,808,800 | ||||
Total stockholders' equity | $2,981,200 | $2,618,800 | ||||
Total liabilities and stockholders' equity | $5,366,160 | $4,517,026 |
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 |
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 5 steps with 4 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://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education