1 Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1...

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1 Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 2 Retained earnings, January 1 3 Net income 4 Total 5 Dividends: 6 On preferred stock 7 On common stock 8 Total dividends 9 Retained earnings, December 31 20Y2 20Y1 $3,704,000.00 $3,264,000.00 600,000.00 550,000.00 $4,304,000.00 $3,814,000.00 $10,000.00 $10,000.00 100,000.00 100,000.00 $110,000.00 $110,000.00 $4,194,000.00 $3,704,000.00 1 2 Sales 3 Cost of goods sold Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 $10,850,000.00 $10,000,000.00 6,000,000.00 5,450,000.00 $4,850,000.00 $4,550,000.00 4 Gross profit 5 Selling expenses 6 Administrative expenses 7 Total operating expenses Income from operations 9 Other income $2,170,000.00 $2,000,000.00 1,627,500.00 1,500,000.00 $3,797,500.00 $3,500,000.00 $1,052,500.00 $1,050,000.00 99,500.00 20,000.00 10 $1,152,000.00 $1,070,000.00 11 Other expense (interest) 132,000.00 120,000.00 12 Income before income tax $1,020,000.00 $950,000.00 13 Income tax expense 420,000.00 400,000.00 14 Net income $600,000.00 $550,000.00 1 2 3 Current assets: Assets Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 2012 20Y1 4 Cash $1,050,000.00 $950,000.00 5 Marketable securities 301,000.00 420,000.00 9 Accounts receivable (net) 585,000.00 500,000.00 7 Inventories 420,000.00 380,000.00 8 Prepaid expenses 108,000.00 20,000.00 9 Total current assets $2,464,000.00 $2,270,000.00 10 Long-term investments 800,000.00 800,000.00 11 Property, plant, and equipment (net) 5,760,000.00 5,184,000.00 12 Total assets $9,024,000.00 $8,254,000.00 13 Liabilities 14 Current liabilities $880,000.00 $800,000.00 Instructions 12 Total assets $9,024,000.00 $8,254,000.00 13 Liabilities 14 Current liabilities $880,000.00 $800,000.00 15 Long-term liabilities: 16 Mortgage note payable, 6%, $200,000,00 $0.00 17 Bonds payable, 4%, 3,000,000.00 3,000,000.00 18 Total long-term liabilities $3,200,000.00 $3,000,000.00 19 Total liabilities $4,080,000.00 $3,800,000.00 20 Stockholders' Equity 21 Preferred 4% stock, $5 par $250,000.00 $250,000.00 22 Common stock, $5 par 500,000.00 500,000.00 23 Retained earnings 4,194,000.00 3,704,000.00 24 Total stockholders' equity $4,944,000.00 $4,454,000.00 25 Total liabilities and stockholders' equity $9,024,000.00 $8,254,000.00 Determine the following measures for 20Y2 (round to one decimal place, including percentages, except for per-share amounts) 1. Working Capital 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover 5. Number of days' sales in receivables 6. Inventory turnover 7. Number of days' sales in inventory 8. Ratio of fixed assets to long-term liabilities 9. Ratio of liabilities to stockholders' equity 10. Times interest earned 11. Asset tumover 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 $ 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 $ % 1 Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 2 Retained earnings, January 1 3 Net income 4 Total 5 Dividends: 6 On preferred stock 7 On common stock 8 Total dividends 9 Retained earnings, December 31 20Y2 20Y1 $3,704,000.00 $3,264,000.00 600,000.00 550,000.00 $4,304,000.00 $3,814,000.00 $10,000.00 $10,000.00 100,000.00 100,000.00 $110,000.00 $110,000.00 $4,194,000.00 $3,704,000.00 1 2 Sales 3 Cost of goods sold Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 $10,850,000.00 $10,000,000.00 6,000,000.00 5,450,000.00 $4,850,000.00 $4,550,000.00 4 Gross profit 5 Selling expenses 6 Administrative expenses 7 Total operating expenses Income from operations 9 Other income $2,170,000.00 $2,000,000.00 1,627,500.00 1,500,000.00 $3,797,500.00 $3,500,000.00 $1,052,500.00 $1,050,000.00 99,500.00 20,000.00 10 $1,152,000.00 $1,070,000.00 11 Other expense (interest) 132,000.00 120,000.00 12 Income before income tax $1,020,000.00 $950,000.00 13 Income tax expense 420,000.00 400,000.00 14 Net income $600,000.00 $550,000.00 1 2 3 Current assets: Assets Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 2012 20Y1 4 Cash $1,050,000.00 $950,000.00 5 Marketable securities 301,000.00 420,000.00 9 Accounts receivable (net) 585,000.00 500,000.00 7 Inventories 420,000.00 380,000.00 8 Prepaid expenses 108,000.00 20,000.00 9 Total current assets $2,464,000.00 $2,270,000.00 10 Long-term investments 800,000.00 800,000.00 11 Property, plant, and equipment (net) 5,760,000.00 5,184,000.00 12 Total assets $9,024,000.00 $8,254,000.00 13 Liabilities 14 Current liabilities $880,000.00 $800,000.00 Instructions 12 Total assets $9,024,000.00 $8,254,000.00 13 Liabilities 14 Current liabilities $880,000.00 $800,000.00 15 Long-term liabilities: 16 Mortgage note payable, 6%, $200,000,00 $0.00 17 Bonds payable, 4%, 3,000,000.00 3,000,000.00 18 Total long-term liabilities $3,200,000.00 $3,000,000.00 19 Total liabilities $4,080,000.00 $3,800,000.00 20 Stockholders' Equity 21 Preferred 4% stock, $5 par $250,000.00 $250,000.00 22 Common stock, $5 par 500,000.00 500,000.00 23 Retained earnings 4,194,000.00 3,704,000.00 24 Total stockholders' equity $4,944,000.00 $4,454,000.00 25 Total liabilities and stockholders' equity $9,024,000.00 $8,254,000.00 Determine the following measures for 20Y2 (round to one decimal place, including percentages, except for per-share amounts) 1. Working Capital 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover 5. Number of days' sales in receivables 6. Inventory turnover 7. Number of days' sales in inventory 8. Ratio of fixed assets to long-term liabilities 9. Ratio of liabilities to stockholders' equity 10. Times interest earned 11. Asset tumover 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 $ 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 $ %