Question

Measures of liquidity, Solvency and Profitability 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 Retained earnings, January 1			$ 1,695,575		$ 1,441,525
Net income			390,000		295,200
Total			$2,085,575		$ 1,736,725
Dividends:
	On preferred stock		$ 11,900		$ 11,900
	On common stock		29,250		29,250
		Total dividends	$ 41,150		$ 41,150
Retained earnings, December 31			$ 2,044,425		$ 1,695,575

Marshall Inc.
Comparative Income Statement
For the Years Ended December 31, 20Y2 and 20Y1
	20Y2		20Y1
Sales	$ 2,350,965		$ 2,166,060
Cost of goods sold	882,570		811,960
Gross profit	$ 1,468,395		$ 1,354,100
Selling expenses	$ 487,600		$ 604,950
Administrative expenses	415,355		355,290
Total operating expenses	902,955		960,240
Income from operations	$ 565,440		$ 393,860
Other revenue	29,760		25,140
	$ 595,200		$ 419,000
Other expense (interest)	152,000		84,000
Income before income tax	$ 443,200		$ 335,000
Income tax expense	53,200		39,800
Net income	$ 390,000		$ 295,200

Marshall Inc.
Comparative Balance Sheet
December 31, 20Y2 and 20Y1
			Dec. 31, 20Y2		Dec. 31, 20Y1
Assets
Current assets
	Cash		$ 453,410		$ 430,290
	Marketable securities		686,250		713,040
	Accounts receivable (net)		423,400		401,500
	Inventories		321,200		248,200
	Prepaid expenses		85,784		86,060
		Total current assets	$ 1,970,044		$ 1,879,090
Long-term investments			831,364		481,047
Property, plant, and equipment (net)			2,470,000		2,223,000
Total assets			$ 5,271,408		$ 4,583,137
Liabilities
Current liabilities			$ 596,983		$ 1,107,562
Long-term liabilities
	Mortgage note payable, 8 %		$ 850,000		$ 0
	Bonds payable, 8 %		1,050,000		1,050,000
		Total long-term liabilities	$ 1,900,000		$ 1,050,000
Total liabilities			$ 2,496,983		$ 2,157,562
Stockholders' Equity
Preferred $ 0.70 stock, $ 20 par			$ 340,000		$ 340,000
Common stock, $ 10 par			390,000		390,000
Retained earnings			2,044,425		1,695,575
Total stockholders' equity			$ 2,774,425		$ 2,425,575
Total liabilities and stockholders' equity			$ 5,271,408		$ 4,583,137

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. Quick ratio
2. Number of days' sales in receivables		days
3. Number of days' sales in inventory		days
4. Times interest earned
5. Asset turnover
6. Return on total assets		%
7. Return on stockholders’ equity		%
8. Return on common stockholders’ equity		%
	$
18. Dividend yield NOTE: PLEASE DO IT ONLY IF YOU KNOW HOW TO DO IT .

Answer 1