Question

The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 63 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			$1,266,500		$1,075,300
Net income			296,000		220,200
Total			$1,562,500		$1,295,500
Dividends:
	On preferred stock		$9,800		$9,800
	On common stock		19,200		19,200
		Total dividends	$29,000		$29,000
Retained earnings, December 31			$1,533,500		$1,266,500

Marshall Inc.
Comparative Income Statement
For the Years Ended December 31, 20Y2 and 20Y1
	20Y2		20Y1
Sales	$1,737,400		$1,600,750
Cost of goods sold	635,100		584,290
Gross profit	$1,102,300		$1,016,460
Selling expenses	$361,110		$453,000
Administrative expenses	307,610		266,040
Total operating expenses	$668,720		$719,040
Income from operations	$433,580		$297,420
Other revenue	22,820		18,980
	$456,400		$316,400
Other expense (interest)	120,000		66,400
Income before income tax	$336,400		$250,000
Income tax expense	40,400		29,800
Net income	$296,000		$220,200

Marshall Inc.
Comparative Balance Sheet
December 31, 20Y2 and 20Y1
			20Y2		20Y1
Assets
Current assets
	Cash		$286,780		$294,410
	Marketable securities		434,040		487,890
	Accounts receivable (net)		321,200		299,300
	Inventories		248,200		189,800
	Prepaid expenses		54,260		58,880
		Total current assets	$1,344,480		$1,330,280
Long-term investments			1,059,170		429,316
Property, plant, and equipment (net)			1,650,000		1,485,000
Total assets			$4,053,650		$3,244,596
Liabilities
Current liabilities			$420,150		$548,096
Long-term liabilities:
	Mortgage note payable, 8%		$670,000		$0
	Bonds payable, 8%		830,000		830,000
		Total long-term liabilities	$1,500,000		$830,000
Total liabilities			$1,920,150		$1,378,096
Stockholders' Equity
Preferred $0.70 stock, $20 par			$280,000		$280,000
Common stock, $10 par			320,000		320,000
Retained earnings			1,533,500		1,266,500
Total stockholders' equity			$2,133,500		$1,866,500
Total liabilities and stockholders' equity			$4,053,650		$3,244,596

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
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		%

Answer 1

1. Ratio Calculation -

If You have any queries then feel free to comment. If you are satisfy with the solution then feel free to give thumbs up! Thank You.