Question

In: Accounting

The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall Inc....

The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall Inc. common stock was $ 56 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 $ 1,568,100 $ 1,336,200
Net income 345,600 273,700
Total $ 1,830,100 $ 1,609,900
Dividends
On preferred stock $ 11,200 $ 11,200
On common stock 30,600 30,600
Total dividends $ 41,800 $ 41,800
Retained earnings, December 31 $ 1,871,900 $ 1,568,100


Marshall Inc.
Comparative Income Statement
For the Years Ended December 31, 20Y2 and 20Y1
   20Y2    20Y1
Sales $ 1,841,060 $ 1,696,210
Cost of goods sold 744,600 685,030
Gross profit $ 1,096,460 $ 1,011,180
Selling expenses $ 324,970 $ 411,180
Administrative expenses 276,830 241,480
Total operating expenses 601,800 652,660
Income from operations $ 494,660 $ 358,520
Other income 26,040 22,880
$ 520,700 $ 381,400
Other expense (interest) 128,000 70,400
Income before income tax $ 392,700 $ 311,000
Income tax expense 47,100 37,300
Net income $ 345,600 $ 273,700


Marshall Inc.
Comparative Balance Sheet
December 31, 20Y2 and 20Y1
   Dec. 31, 20Y2    Dec. 31, 20Y1
Assets
Current assets
Cash $ 268,740 $ 346,970
Marketable securities 406,730 574,980
Accounts receivable (net) 365,000 343,100
Inventories 277,400 219,000
Prepaid expenses 50,842 69,390
Total current assets $ 1,368,712 $ 1,553,440
Long-term investments 1,304,708 507,441
Property, plant, and equipment (net) 1,920,000 1,728,000
Total assets $ 4,593,420 $ 3,788,881
Liabilities
Current liabilities $ 441,520 $ 660,781
Long-term liabilities
Mortgage note payable, 8 % $ 720,000 $ 0
Bonds payable, 8 % 880,000 880,000
Total long-term liabilities $ 1,600,000 $ 880,000
Total liabilities $ 2,041,520 $ 1,540,781
Stockholders' Equity
Preferred $ 0.70 stock, $ 20 par $ 320,000 $ 320,000
Common stock, $ 10 par 360,000 360,000
Retained earnings 1,871,900 1,568,100
Total stockholders' equity $ 2,551,900 $ 2,248,100
Total liabilities and stockholders' equity $ 4,593,420 $ 3,788,881

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.

3. Quick ratio
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 %

Solutions

Expert Solution

Please rate the answer


Related Solutions

The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall Inc....
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall Inc. common stock was $ 51 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 $ 4,526,050 $ 3,821,450 Net income 966,000 782,700 Total $ 5,335,850 $ 4,604,150 Dividends On preferred stock $ 13,300 $ 13,300 On common stock 64,800 64,800 Total dividends $ 78,100 $ 78,100 Retained earnings,...
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall Inc....
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall Inc. common stock was $ 57 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 $ 1,662,900 $ 1,409,300 Net income 369,200 288,600 Total $ 1,962,100 $ 1,697,900 Dividends On preferred stock $ 6,300 $ 6,300 On common stock 28,700 28,700 Total dividends $ 35,000 $ 35,000 Retained earnings,...
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall Inc....
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall Inc. common stock was $ 56 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 $ 1,568,100 $ 1,336,200 Net income 345,600 273,700 Total $ 1,830,100 $ 1,609,900 Dividends On preferred stock $ 11,200 $ 11,200 On common stock 30,600 30,600 Total dividends $ 41,800 $ 41,800 Retained earnings,...
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall Inc....
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall Inc. common stock was $ 61 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 $ 1,314,800 $ 1,112,500 Net income 276,000 227,900 Total $ 1,590,800 $ 1,340,400 Dividends On preferred stock $ 9,100 $ 9,100 On common stock 16,500 16,500 Total dividends $ 25,600 $ 25,600 Retained earnings,...
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall Inc....
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall Inc. common stock was $ 53 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 $ 3,643,250 $ 3,089,750 Net income 772,800 632,800 Total $ 4,257,450 $ 3,722,550 Dividends On preferred stock $ 10,500 $ 10,500 On common stock 68,800 68,800 Total dividends $ 79,300 $ 79,300 Retained earnings,...
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall Inc....
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...
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common...
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 54 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 $ 2,821,050 $ 2,378,450 Net income 642,400 487,100 Total $3,463,450 $ 2,865,550 Dividends: On preferred stock $ 10,500 $ 10,500 On common stock 34,000 34,000 Total dividends $ 44,500 $ 44,500 Retained earnings, December 31...
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common...
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...
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common...
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $82.80 on December 31, 20Y2. Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 1 20Y2 20Y1 2 Retained earnings, January 1 $3,716,000.00 $3,266,000.00 3 Net income 630,000.00 560,000.00 4 Total $4,346,000.00 $3,826,000.00 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...
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common...
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 59 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 $1,945,250 $1,654,850 Net income 438,000 338,900 Total $2,383,250 $1,993,750 Dividends: On preferred stock $14,000 $14,000 On common stock 34,500 34,500 Total dividends $48,500 $48,500 Retained earnings, December 31 $2,334,750 $1,945,250 Marshall Inc. Comparative Income Statement...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT