Determine the following measures for 20Y2 (round to one decimal place, including percentages, except for per-share amounts): Ass
ume a 365-day year.
1. Working Capital $ 1591000
2. Current ratio 2.8
3. Quick ratio 2.2
4. Accounts receivable turnover 20.0
5. Number of days' sales in receivables 18.3
6. Inventory turnover 15.2
7. Number of days’ sales in inventory 24
8. Ratio of fixed assets to long-term liabilities 1.8
9. Ratio of liabilities to stockholders’ equity .8
10. Times interest earned 8.5
11. Asset turnover
12. Return on total assets %
13. Return on stockholders’ equity 12.5%
14. Return on common stockholders’ equity %
15. Earnings per share on common stock $
16. Price-earnings ratio
17. Dividends per share of common stock $1.00
18. Dividend yield 1.2 %
Marshall Inc.
Comparative Retained Earnings Statement
For the Years Ended December 31, 20Y2 and 20Y1
20Y2 20Y1
1 Retained earnings, January 1 $3,712,000.0 $3,262,000.00
2 Net income 589,000.00 560,000.00
4 Total $4,301,000.00 $3,822,000.00
5 Dividends:
6 On preferred stock $10,000.00 $10,000.00
7 On common stock 100,000.00 100,000.00
8 Total dividends $110,000.00 $110,000.00
9 Retained earnings, December 31 $4,191,000.00 $3,712,000.00
Marshall Inc.
Comparative Income Statement
For the Years Ended December 31, 20Y2 and 20Y1
20Y2 20Y1
Sales $10,840,000.00 $10,000,000.00
Cost of goods sold 6,000,000.00 5,440,000.00
Gross profit $4,840,000.00 $4,560,000.00
Selling expenses $2,180,000.00 $2,000,000.00
Administrative expenses 1,627,500.00 1,500,000.00
Total operating expenses $3,807,500.00 $3,500,000.00
Income from operations $1,032,500.00 $1,060,000.00
Other income 99,500.00 20,000.00
$1,132,000.00 $1,080,000.00
Other expense (interest) 133,000.00 120,000.00
Income before income tax $999,000.00 $960,000.00
Income tax expense 410,000.00 400,000.00
Net income $589,000.00 $560,000.00
Comparative Balance Sheet December 31, 20Y2 and 20Y1
1 20Y2 20Y1
2 Assets
3 Current assets:
4 Cash $1,050,000.00 $950,000.00
5 Marketable securities 301,000.00 420,000.00
6 Accounts receivable (net) 585,000.00 500,000.00
7 Inventories 420,000.00 380,000.00
8 Prepaid expenses 108,000.00 20,000.00
9 Total current assets $2,464,000.00 $2,270,000.00
10 Long-term investments 800,000.00 800,000.00
11 Property, plant, and equipment (net) 5,760,000.00 5,184,000.00
12 Total assets $9,024,000.00 $8,254,000.00
13 Liabilities
14 Current liabilities $880,000.00 $800,000.00
15 Long-term liabilities:
16 Mortgage note payable, 6% $200,000.00 $0.00
17 Bonds payable, 4% 3,000,000.00 3,000,000.00
18 Total long-term liabilities $3,200,000.00 $3,000,000.00
19 Total liabilities $4,080,000.00 $3,800,000.00
20 Stockholders' Equity
21 Preferred 4% stock, $5 par $250,000.00 $250,000.00
22 Common stock, $5 par 500,000.00 500,000.00
23 Retained earnings 4,194,000.00 3,704,000.00
24 Total stockholders' equity $4,944,000.00 $4,454,000.00
25 Total liabilities and stockholders' equity $9,024,000.00 $8,254,000.00
