Current assets: Stargel Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 Assets 20Y2 20Y1 Cash...

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Current assets: Stargel Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 Assets 20Y2 20Y1 Cash $500,000 $400,000 Marketable securities 1,010,000 1,000,000 Accounts receivable (net) 740,000 510,000 Inventories 1,190,000 950,000 Prepaid expenses 250,000 229,000 Total current assets $3,690,000 $3,089,000 Long-term investments 2,350,000 2,300,000 Property, plant, and equipment (net) 3,740,000 3,366,000 Total assets $9,780,000 $8,755,000 Liabilities Current liabilities $900,000 $880,000 Long-term liabilities: Mortgage note payable, 10% $200,000 $0 Bonds payable, 10% 1,500,000 1,500,000 Total long-term liabilities $1,700,000 $1,500,000 Total liabilities $2,600,000 $2,380,000 Stockholders' Equity Preferred $0.90 stock, $10 par $500,000 Common stock, $5 par Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Required: $7,180,000 $6,375,000 $9,780,000 $8,755,000 500,000 6,180,000 $500,000 500,000 5,375,000 Measures of liquidity, solvency and profitability The comparative financial statements of Stargel Inc. are as follows. The market price of Stargel common stock was $119.70 on December 31, 20Y2. Stargel Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 Retained earnings, January 1 20Y2 20Y1 $5,375,000 $4,545,000 Net income Dividends: On preferred stock On common stock Increase in retained earnings $900,000 $925,000 (45,000) (45,000) (50,000) (50,000) $805,000 $830,000 Retained earnings, December 31 $6,180,000 $5,375,000 Sales Stargel Inc. Comparative Income Statement For the Years Ended December 31, 2012 and 20Y1 Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Operating income Other revenue and expense: Other revenue Other expense (interest) Income before income tax expense 20Y2 20Y1 $10,000,000 $9,400,000 (5,350,000) (4,950,000) $4,650,000 $4,450,000 $(2,000,000) $(1,880,000) (1,500,000) (1,410,000) $(3,500,000) $(3,290,000) $1,150,000 $1,160,000 150,000 (170,000) $1,130,000 140,000 (150,000) $1,150,000 Determine the following measures for 20Y2. Rounding to one decimal place, except 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. Days' sales in receivables 6. Inventory turnover $ 2,790,000 4.1 2.5 16 22.8 days 5 7. Days' sales in inventory 73 days 8. Ratio of fixed assets to long-term liabilities 2.2 9. Ratio of liabilities to stockholders' equity 0.4 10. Times interest earned 7.6 11. Asset turnover 1.4 12. Return on total assets 11.5 % 13. Return on stockholders' equity 13.3 % 14. Return on common stockholders' equity 13.6 % 15. Earnings per share on common stock 8.6 X 16. Price-earnings ratio 17. Dividends per share of common stock 18. Dividend yield % Current assets: Stargel Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 Assets 20Y2 20Y1 Cash $500,000 $400,000 Marketable securities 1,010,000 1,000,000 Accounts receivable (net) 740,000 510,000 Inventories 1,190,000 950,000 Prepaid expenses 250,000 229,000 Total current assets $3,690,000 $3,089,000 Long-term investments 2,350,000 2,300,000 Property, plant, and equipment (net) 3,740,000 3,366,000 Total assets $9,780,000 $8,755,000 Liabilities Current liabilities $900,000 $880,000 Long-term liabilities: Mortgage note payable, 10% $200,000 $0 Bonds payable, 10% 1,500,000 1,500,000 Total long-term liabilities $1,700,000 $1,500,000 Total liabilities $2,600,000 $2,380,000 Stockholders' Equity Preferred $0.90 stock, $10 par $500,000 Common stock, $5 par Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Required: $7,180,000 $6,375,000 $9,780,000 $8,755,000 500,000 6,180,000 $500,000 500,000 5,375,000 Measures of liquidity, solvency and profitability The comparative financial statements of Stargel Inc. are as follows. The market price of Stargel common stock was $119.70 on December 31, 20Y2. Stargel Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 Retained earnings, January 1 20Y2 20Y1 $5,375,000 $4,545,000 Net income Dividends: On preferred stock On common stock Increase in retained earnings $900,000 $925,000 (45,000) (45,000) (50,000) (50,000) $805,000 $830,000 Retained earnings, December 31 $6,180,000 $5,375,000 Sales Stargel Inc. Comparative Income Statement For the Years Ended December 31, 2012 and 20Y1 Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Operating income Other revenue and expense: Other revenue Other expense (interest) Income before income tax expense 20Y2 20Y1 $10,000,000 $9,400,000 (5,350,000) (4,950,000) $4,650,000 $4,450,000 $(2,000,000) $(1,880,000) (1,500,000) (1,410,000) $(3,500,000) $(3,290,000) $1,150,000 $1,160,000 150,000 (170,000) $1,130,000 140,000 (150,000) $1,150,000 Determine the following measures for 20Y2. Rounding to one decimal place, except 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. Days' sales in receivables 6. Inventory turnover $ 2,790,000 4.1 2.5 16 22.8 days 5 7. Days' sales in inventory 73 days 8. Ratio of fixed assets to long-term liabilities 2.2 9. Ratio of liabilities to stockholders' equity 0.4 10. Times interest earned 7.6 11. Asset turnover 1.4 12. Return on total assets 11.5 % 13. Return on stockholders' equity 13.3 % 14. Return on common stockholders' equity 13.6 % 15. Earnings per share on common stock 8.6 X 16. Price-earnings ratio 17. Dividends per share of common stock 18. Dividend yield %