Chapter 17:

*Please help with #12-18 with showing formulas*

Measures of liquidity, Solvency, and Profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 66 on December 31, 20Y2. Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 2041 20Y2 2011 Retained earnings, January 1 $3,075,100 $3,629,900 795,200 Net income 629,800 Dividends: On preferred stock On common stock (10,500) (64,500) $4,350,100 (10,500) (64,500) Retained earnings, December 31 $3,629,900 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 2041 20Y2 20Y1 Sales $5,728,310 2,036,700 $5,277,780 1,873,760 Cost of merchandise sold Gross profit $3,691,610 $3,404,020 Selling expenses Administrative expenses $1,324,720 1,128,470 $1,590,230 933,950 $2,453,190 $2,524,180 Total operating expenses Income from operations $1,238,420 $879,840 Other revenue and expense: Other revenue 56,160 Other expense interest) 65,180 (400,000) $903,600 (220,000) Income before income tax expense $716,000 86,200 Income tax expense 108,400 Net income $795,200 $629,800 Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 2041 20Y2 20Y1 Assets Current assets: Cash $1,081,740 $765,330 Marketable securities 1,637,230 1,268,260 1,000,100 941,700 744,600 569,400 204,660 153,070 Accounts receivable (net) Inventories Prepaid expenses Total current assets Long-term investments Property, plant, and equipment (net) $3,697,760 $4,668,330 2,347,880 371,165 5,500,000 4,950,000 Total assets $12,516,210 $9,018,925 Liabilities $1,556,110 $1,029,025 Current liabilities Long-term liabilities: Mortgage note payable, 8% Bonds payable, 8% Total long-term liabilities $2,250,000 $0 2,750,000 2,750,000 $2,750,000 $5,000,000 $6,556,110 Total liabilities $3,779,025 Stockholders' Equity Preferred $0.70 stock, $50 par Common stock, $10 par $750,000 $750,000 860,000 860,000 Retained earnings 4,350,100 3,629,900 $5,960,100 $5,239,900 Total stockholders' equity Total liabilities and stockholders' equity $12,516,210 $9,018,925 Required: Determine the following measures for 2042, 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 $ 3,112,220 2. Current ratio 3.0 3. Quick ratio 2.4 4. Accounts receivable turnover 5.9 5. Number of days' sales in receivables 61.9 days 6. Inventory turnover 3.1 7. Number of days' sales in inventory 117.7 days 8. Ratio of fixed assets to long-term liabilities 1.1 9. Ratio of liabilities to stockholders' equity 1.1 10. Times interest earned 3.3 11. Asset turnover 0.5 12. Return on total assets 0.1 X % 13. Return on stockholders' equity 0.1 X % 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 % 12. Divide the sum of net income plus interest expense by average total assets. Average total assets = (Beginning total assets + Ending total assets) = 2. 13. Divide net income by average total stockholders' equity. Average total stockholders' equity = (Beginning total stockholders' equity + Ending total stockholders' equity) = 2. 14. Divide net income minus preferred dividends from the retained earnings statement by average common stockholders' equity. Common stockholders' equity = Common stock + Retained earnings. Average common stockholders' equity = (Beginning common stockholders' equity + Ending common stockholders' equity) = 2. 15. Divide net income minus preferred dividends from the retained earnings statement by common shares outstanding (common stock = par value). 16. Divide common market share price by common earnings per share (use answer from requirement 15). 17. Divide common dividends (from Retained Earnings Statement) by common shares outstanding (common stock = par value). 18. Divide common dividends per share (use answer from requirement 17) by market share price