Question

Measures of liquidity, Solvency, and Profitability (ONLY DO NUMBER 8 TO NUMBER 18)

The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 52 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			$2,057,900		$1,749,700
Net income			454,400		358,400
Total			$2,512,300		$2,108,100
Dividends:
	On preferred stock		$7,700		$7,700
	On common stock		42,500		42,500
		Total dividends	$50,200		$50,200
Retained earnings, December 31			$2,462,100		$2,057,900

Marshall Inc.
Comparative Income Statement
For the Years Ended December 31, 20Y2 and 20Y1
	20Y2		20Y1
Sales	$2,657,200		$2,448,260
Cost of goods sold	963,600		886,510
Gross profit	$1,693,600		$1,561,750
Selling expenses	$563,450		$687,920
Administrative expenses	479,970		404,020
Total operating expenses	$1,043,420		$1,091,940
Income from operations	$650,180		$469,810
Other revenue	34,220		29,990
	$684,400		$499,800
Other expense (interest)	168,000		92,800
Income before income tax	$516,400		$407,000
Income tax expense	62,000		48,600
Net income	$454,400		$358,400

Marshall Inc.
Comparative Balance Sheet
December 31, 20Y2 and 20Y1
			20Y2		20Y1
Assets
Current assets
	Cash		$420,050		$472,450
	Marketable securities		635,750		782,920
	Accounts receivable (net)		489,100		459,900
	Inventories		365,000		277,400
	Prepaid expenses		79,476		94,490
		Total current assets	$1,989,376		$2,087,160
Long-term investments			1,614,404		735,474
Property, plant, and equipment (net)			2,520,000		2,268,000
Total assets			$6,123,780		$5,090,634
Liabilities
Current liabilities			$621,680		$932,734
Long-term liabilities:
	Mortgage note payable, 8%		$940,000		$0
	Bonds payable, 8%		1,160,000		1,160,000
		Total long-term liabilities	$2,100,000		$1,160,000
Total liabilities			$2,721,680		$2,092,734
Stockholders' Equity
Preferred $0.70 stock, $40 par			$440,000		$440,000
Common stock, $10 par			500,000		500,000
Retained earnings			2,462,100		2,057,900
Total stockholders' equity			$3,402,100		$2,997,900
Total liabilities and stockholders' equity			$6,123,780		$5,090,634

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

Please give positive ratings so I can keep answering. It would help me a lot. Please comment if you have any query. Thanks!

Marshall
Statement of Earnings	20Y2	20Y1
Sales	2,657,200.00	2,448,260.00
Cost of goods sold	963,600.00	886,510.00
Gross Profit	1,693,600.00	1,561,750.00
Selling expenses	563,450.00	687,920.00
Administrative expenses	479,970.00	404,020.00
Total operating expenses	1,043,420.00	1,091,940.00
Income from operations	650,180.00	469,810.00
Other revenue	34,220.00	29,990.00
	684,400.00	499,800.00
Other expense (interest)	168,000.00	92,800.00
Income before income tax	516,400.00	407,000.00
Income tax expense	62,000.00	48,600.00
Net Income	454,400.00	358,400.00
Preferred stock Dividend	7,700.00	7,700.00
Net Income - available for common stockholder	446,700.00	350,700.00
Statement of Financial Position
Assets	20Y2	20Y1
Cash	420,050.00	472,450.00
Marketable securities	635,750.00	782,920.00
Accounts Receivable (Net)	489,100.00	459,900.00
Inventory	365,000.00	277,400.00
Prepaid expenses	79,476.00	94,490.00
Total Current Assets	1,989,376.00	2,087,160.00
Long-term investments	1,614,404.00	735,474.00
Property Assets (Net)	2,520,000.00	2,268,000.00
Total Assets	6,123,780.00	5,090,634.00
Liabilities
Current Liabilities	621,680.00	932,734.00
Long Term- Liabilities
Mortgage note payable, 8%	940,000.00	-
Bonds Payable, 8%	1,160,000.00	1,160,000.00
Total Long Term- Liabilities	2,100,000.00	1,160,000.00
Total Liabilities	2,721,680.00	2,092,734.00
Stockholders' Equity
Preferred $0.70 stock, $20 par	440,000.00	440,000.00
Common Stock, $ 10 par	500,000.00	500,000.00
Retained Earnings	2,462,100.00	2,057,900.00
Total Stockholders' Equity	3,402,100.00	2,997,900.00
Total Liabilities & Stockholders' Equity	6,123,780.00	5,090,634.00
Total Current Assets	1,989,376.00
Less: Inventory	365,000.00
Prepaid expenses	79,476.00
Quick Assets	1,544,900.00
	20Y2	20Y1
Accounts Receivable (Net)	489,100.00	459,900.00
Average Accounts Receivable (Net)	474,500.00
Inventory	365,000.00	277,400.00
Average Inventory	321,200.00
Total Assets	6,123,780.00	5,090,634.00
Average Total Assets	5,607,207.00
Common Stock, $ 10 par	500,000.00
Retained Earnings	2,462,100.00
Total Common Stockholders' Equity	2,962,100.00
Common Stock, $ 10 par	500,000.00
Par Value	10.00
Number of shares in Common Stock	50,000.00
Market price per share	52.00
Common Stock dividends	42,500.00

Ans 1- Working capital	20Y2
Current Assets- Current Liabilities	1,367,696.00
Ans 2- Current Ratio
Current Assets/Current Liabilities	3.20
Ans 3- Acid Test Ratio
Quick Assets/Quick Liabilities	2.49
Ans 4- Accounts Receivables Turnover
Sales Revenue/Average Accounts Receivable	5.60
Ans 5- Number of days' sales in receivables
365/ Accounts Receivables Turnover	65.18
Ans 6- Inventory Turnover
Cost of goods sold/Average Inventory	3.00
Ans 7- Number of days' sales in inventory
365/ Inventory Turnover	121.67
Ans 8- Ratio of fixed assets to long-term liabilities
Property Assets (Net)/ long-term liabilities	1.20
Ans 9- Ratio of liabilities to stockholders' equity
Total Liabilities/ Stockholders' equity	0.80
Ans 10- Times interest earned
Income from operations/ Interest	3.87
Ans 11- Asset turnover
Sales Revenue/Average Total Assets	0.47
Ans 12- Return on Total Assets
Net Income /Average Total Assets	8.10%
Ans 13- Return on stockholders’ equity
Net Income / Total stockholders’ equity	13.36%
Ans 14- Return on Common stockholders’ equity
Net Income - available for common stockholder / Total Common stockholders’ equity	15.08%
Ans 15- Earnings Per share on Common Stock
Net Income - available for common stockholder /Number of shares in Common Stock	8.93
Ans 16- Price Earnings Ratio
Market Price/ Earnings Per share on Common Stock	5.82
Ans 17- Dividend Per share on Common Stock
Common Dividend/ Number of shares in Common Stock	0.85
Ans 18- Dividend Yield
Dividend Per share on Common Stock/ Market Price	1.63%