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The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock vwas $82.60 on December 31, 20Y2. Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 20Υ2 20Υ1 Retained earnings, January 1 $3,704,000 $3,264,000 Net income $ 600,000 $ 550,000 Dividends: On preferred stock On common stock (10,000) (10,000) (100,000) $ 490,000 (100,000) $ 440,000 Increase in retained earnings Retained earnings, December 31 $4,194,000 $3,704,000 Marshall Inc. Comparative Income Statement

The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock vwas $82.60 on December 31, 20Y2. Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 20Υ2 20Υ1 Retained earnings, January 1 $3,704,000 $3,264,000 Net income $ 600,000 $ 550,000 Dividends: On preferred stock On common stock (10,000) (10,000) (100,000) $ 490,000 (100,000) $ 440,000 Increase in retained earnings Retained earnings, December 31 $4,194,000 $3,704,000 Marshall Inc. Comparative Income Statement

College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter24: Analysis Of Financial Statements
Section: Chapter Questions
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# Financial Analysis of Marshall Inc. The following is a detailed transcription of Marshall Inc.'s financial statements for educational purposes, highlighting measures of liquidity, solvency, and profitability. ## Comparative Retained Earnings Statement **For the Years Ended December 31, 20Y2 and 20Y1** - **Retained earnings, January 1:** - 20Y2: \$3,704,000 - 20Y1: \$3,264,000 - **Net income:** - 20Y2: \$600,000 - 20Y1: \$550,000 - **Dividends:** - Preferred stock: - Both 20Y2 and 20Y1: (\$10,000) - Common stock: - Both 20Y2 and 20Y1: (\$100,000) - **Increase in retained earnings:** - 20Y2: \$490,000 - 20Y1: \$440,000 - **Retained earnings, December 31:** - 20Y2: \$4,194,000 - 20Y1: \$3,704,000 ## Comparative Income Statement **For the Years Ended December 31, 20Y2 and 20Y1** - **Sales:** - 20Y2: \$10,850,000 - 20Y1: \$10,000,000 - **Cost of goods sold:** - 20Y2: (\$6,000,000) - 20Y1: (\$5,450,000) - **Gross profit:** - 20Y2: \$4,850,000 - 20Y1: \$4,550,000 - **Operating expenses:** - Selling expenses: - 20Y2: (\$2,170,000) - 20Y1: (\$2,000,000) - Administrative expenses: - 20Y2: (\$1,627,500) - 20Y1: (\$1,500,000) - **Total operating expenses:** - 20Y2: (\$3,797,500) - 20Y1: (\$3,500,
Transcribed Image Text:# Financial Analysis of Marshall Inc. The following is a detailed transcription of Marshall Inc.'s financial statements for educational purposes, highlighting measures of liquidity, solvency, and profitability. ## Comparative Retained Earnings Statement **For the Years Ended December 31, 20Y2 and 20Y1** - **Retained earnings, January 1:** - 20Y2: \$3,704,000 - 20Y1: \$3,264,000 - **Net income:** - 20Y2: \$600,000 - 20Y1: \$550,000 - **Dividends:** - Preferred stock: - Both 20Y2 and 20Y1: (\$10,000) - Common stock: - Both 20Y2 and 20Y1: (\$100,000) - **Increase in retained earnings:** - 20Y2: \$490,000 - 20Y1: \$440,000 - **Retained earnings, December 31:** - 20Y2: \$4,194,000 - 20Y1: \$3,704,000 ## Comparative Income Statement **For the Years Ended December 31, 20Y2 and 20Y1** - **Sales:** - 20Y2: \$10,850,000 - 20Y1: \$10,000,000 - **Cost of goods sold:** - 20Y2: (\$6,000,000) - 20Y1: (\$5,450,000) - **Gross profit:** - 20Y2: \$4,850,000 - 20Y1: \$4,550,000 - **Operating expenses:** - Selling expenses: - 20Y2: (\$2,170,000) - 20Y1: (\$2,000,000) - Administrative expenses: - 20Y2: (\$1,627,500) - 20Y1: (\$1,500,000) - **Total operating expenses:** - 20Y2: (\$3,797,500) - 20Y1: (\$3,500,
### Balance Sheet Overview **Assets** - **Current Assets** - Cash: $500,000 - Marketable securities: $160,000 - Accounts receivable (net): $800,000 for both years - Inventories: $994,000 for 20Y2, $690,000 for 20Y1 - Prepaid expenses: $10,000 for 20Y2, $20,000 for 20Y1 - **Total Current Assets**: $2,464,000 for 20Y2, $2,270,000 for 20Y1 - **Long-term Investments**: $800,000 for both years - **Property, Plant, and Equipment (net)**: $5,760,000 for 20Y2, $5,184,000 for 20Y1 - **Total Assets**: $9,024,000 for 20Y2, $8,254,000 for 20Y1 **Liabilities** - **Current Liabilities**: $800,000 for both years - **Long-term Liabilities** - Mortgage note payable, 6%: $200,000 for 20Y2, $0 for 20Y1 - Bonds payable, 4%: $3,000,000 for both years - **Total Long-term Liabilities**: $3,200,000 for 20Y2, $3,000,000 for 20Y1 - **Total Liabilities**: $4,080,000 for 20Y2, $3,800,000 for 20Y1 **Stockholders' Equity** - Preferred 4% stock, $5 par: $250,000 for both years - Common stock, $5 par: $500,000 for both years - Retained earnings: $4,194,000 for 20Y2, $3,704,000 for 20Y1 - **Total Stockholders' Equity**: $4,944,000 for 20Y2, $4,454,000 for 20Y1 - **Total Liabilities and Stockholders' Equity**: $9,024,000 for 20Y2, $8,254,000 for 20Y1 ### Financial Metrics for 20Y2 1
Transcribed Image Text:### Balance Sheet Overview **Assets** - **Current Assets** - Cash: $500,000 - Marketable securities: $160,000 - Accounts receivable (net): $800,000 for both years - Inventories: $994,000 for 20Y2, $690,000 for 20Y1 - Prepaid expenses: $10,000 for 20Y2, $20,000 for 20Y1 - **Total Current Assets**: $2,464,000 for 20Y2, $2,270,000 for 20Y1 - **Long-term Investments**: $800,000 for both years - **Property, Plant, and Equipment (net)**: $5,760,000 for 20Y2, $5,184,000 for 20Y1 - **Total Assets**: $9,024,000 for 20Y2, $8,254,000 for 20Y1 **Liabilities** - **Current Liabilities**: $800,000 for both years - **Long-term Liabilities** - Mortgage note payable, 6%: $200,000 for 20Y2, $0 for 20Y1 - Bonds payable, 4%: $3,000,000 for both years - **Total Long-term Liabilities**: $3,200,000 for 20Y2, $3,000,000 for 20Y1 - **Total Liabilities**: $4,080,000 for 20Y2, $3,800,000 for 20Y1 **Stockholders' Equity** - Preferred 4% stock, $5 par: $250,000 for both years - Common stock, $5 par: $500,000 for both years - Retained earnings: $4,194,000 for 20Y2, $3,704,000 for 20Y1 - **Total Stockholders' Equity**: $4,944,000 for 20Y2, $4,454,000 for 20Y1 - **Total Liabilities and Stockholders' Equity**: $9,024,000 for 20Y2, $8,254,000 for 20Y1 ### Financial Metrics for 20Y2 1
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