Question

The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall Inc. common stock was $ 65 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			$ 2,815,650		$ 2,379,550
Net income			660,000		487,400
Total			$ 3,373,050		$ 2,866,950
Dividends
	On preferred stock		$ 10,500		$ 10,500
	On common stock		40,800		40,800
		Total dividends	$ 51,300		$ 51,300
Retained earnings, December 31			$ 3,424,350		$ 2,815,650

Marshall Inc.
Comparative Income Statement
For the Years Ended December 31, 20Y2 and 20Y1
	20Y2		20Y1
Sales	$ 3,814,250		$ 3,514,300
Cost of goods sold	1,470,950		1,353,270
Gross profit	$ 2,343,300		$ 2,161,030
Selling expenses	$ 749,300		$ 949,990
Administrative expenses	638,300		557,930
Total operating expenses	1,387,600		1,507,920
Income from operations	$ 955,700		$ 653,110
Other income	50,300		41,690
	$ 1,006,000		$ 694,800
Other expense (interest)	256,000		140,800
Income before income tax	$ 750,000		$ 554,000
Income tax expense	90,000		66,600
Net income	$ 660,000		$ 487,400

Marshall Inc.
Comparative Balance Sheet
December 31, 20Y2 and 20Y1
			Dec. 31, 20Y2		Dec. 31, 20Y1
Assets
Current assets
	Cash		$ 683,070		$ 686,470
	Marketable securities		1,033,840		1,137,580
	Accounts receivable (net)		715,400		671,600
	Inventories		540,200		408,800
	Prepaid expenses		129,235		137,290
		Total current assets	$ 3,101,745		$ 3,041,740
Long-term investments			1,676,520		633,138
Property, plant, and equipment (net)			4,160,000		3,744,000
Total assets			$ 8,938,265		$ 7,418,878
Liabilities
Current liabilities			$ 1,033,915		$ 1,563,228
Long-term liabilities
	Mortgage note payable, 8 %		$ 1,440,000		$ 0
	Bonds payable, 8 %		1,760,000		1,760,000
		Total long-term liabilities	$ 3,200,000		$ 1,760,000
Total liabilities			$ 4,233,915		$ 3,323,228
Stockholders' Equity
Preferred $ 0.70 stock, $ 40 par			$ 600,000		$ 600,000
Common stock, $ 10 par			680,000		680,000
Retained earnings			3,424,350		2,815,650
	Total stockholders' equity		$ 4,704,350		$ 4,095,650
Total liabilities and stockholders' equity			$ 8,938,265		$ 7,418,878

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.

Working capital	$
Current ratio
Quick ratio
Accounts receivable turnover
Number of days' sales in receivables		days
Inventory turnover
Number of days' sales in inventory		days
Ratio of fixed assets to long-term liabilities
Ratio of liabilities to stockholders' equity
Times interest earned
Asset turnover
Return on total assets		%
Return on stockholders’ equity		%
Return on common stockholders’ equity		%
Earnings per share on common stock	$
Price-earnings ratio
Dividends per share of common stock	$
Dividend yield		%

Answer 1