Question

The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 64 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			$ 4,159,100		$ 3,518,300
Net income			921,600		720,600
Total			$5,080,700		$ 4,238,900
Dividends:
	On preferred stock		$ 11,900		$ 11,900
	On common stock		67,900		67,900
		Total dividends	$ 79,800		$ 79,800
Retained earnings, December 31			$ 5,000,900		$ 4,159,100

Marshall Inc.
Comparative Income Statement
For the Years Ended December 31, 20Y2 and 20Y1
	20Y2		20Y1
Sales	$ 5,450,910		$ 5,022,190
Cost of goods sold	1,949,100		1,793,170
Gross profit	$ 3,501,810		$ 3,229,020
Selling expenses	$ 1,185,450		$ 1,442,200
Administrative expenses	1,009,830		847,010
Total operating expenses	$2,195,280		$2,289,210
Income from operations	$ 1,306,530		$ 939,810
Other revenue	68,770		59,990
	$ 1,375,300		$ 999,800
Other expense (interest)	328,000		180,800
Income before income tax	$ 1,047,300		$ 819,000
Income tax expense	125,700		98,400
Net income	$ 921,600		$ 720,600

Marshall Inc.
Comparative Balance Sheet
December 31, 20Y2 and 20Y1
			20Y2		20Y1
Assets
Current assets
	Cash		$ 921,420		$ 974,710
	Marketable securities		1,394,590		1,615,230
	Accounts receivable (net)		985,500		927,100
	Inventories		730,000		569,400
	Prepaid expenses		174,322		194,940
		Total current assets	$ 4,205,832		$ 4,281,380
Long-term investments			3,151,788		1,733,000
Property, plant, and equipment (net)			4,920,000		4,428,000
Total assets			$ 12,277,620		$ 10,442,380
Liabilities
Current liabilities			$ 1,356,720		$ 2,203,280
Long-term liabilities:
	Mortgage note payable, 8%		$ 1,840,000		$ 0
	Bonds payable, 8%		2,260,000		2,260,000
		Total long-term liabilities	$ 4,100,000		$ 2,260,000
Total liabilities			$ 5,456,720		$ 4,463,280
Stockholders' Equity
Preferred $0.70 stock, $50 par			$ 850,000		$ 850,000
Common stock, $10 par			970,000		970,000
Retained earnings			5,000,900		4,159,100
Total stockholders' equity			$ 6,820,900		$ 5,979,100
Total liabilities and stockholders' equity			$ 12,277,620		$ 10,442,380

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