Determine the following measures for 20Y2 (round to one decimal place, including percentages, except for per-share amounts):
Question:
Determine the following measures for 20Y2 (round to one decimal place, including percentages, except for per-share amounts): Assume a 365-day year.
1. Working Capital $ 1591000
2. Current ratio 2.8
3. Quick ratio 2.2
4. Accounts receivable turnover 20.0
5. Number of days' sales in receivables 18.3
6. Inventory turnover 15.2
7. Number of days’ sales in inventory 24
8. Ratio of fixed assets to long-term liabilities 1.8
9. Ratio of liabilities to stockholders’ equity .8
10. Times interest earned 8.5
11. Asset turnover
12. Return on total assets %
13. Return on stockholders’ equity 12.5%
14. Return on common stockholders’ equity %
15. Earnings per share on common stock $
16. Price-earnings ratio
17. Dividends per share of common stock $1.00
18. Dividend yield 1.2 %
Marshall Inc. |
Comparative Retained Earnings Statement |
For the Years Ended December 31, 20Y2 and 20Y1 |
1 | 20Y2 | 20Y1 | |
2 | Retained earnings, January 1 | $3,712,000.00 | $3,262,000.00 |
3 | Net income | 589,000.00 | 560,000.00 |
4 | Total | $4,301,000.00 | $3,822,000.00 |
5 | Dividends: | ||
6 | On preferred stock | $10,000.00 | $10,000.00 |
7 | On common stock | 100,000.00 | 100,000.00 |
8 | Total dividends | $110,000.00 | $110,000.00 |
9 | Retained earnings, December 31 | $4,191,000.00 | $3,712,000.00 |
Marshall Inc. |
Comparative Income Statement |
For the Years Ended December 31, 20Y2 and 20Y1 |
1 | 20Y2 | 20Y1 | |
2 | Sales | $10,840,000.00 | $10,000,000.00 |
3 | Cost of goods sold | 6,000,000.00 | 5,440,000.00 |
4 | Gross profit | $4,840,000.00 | $4,560,000.00 |
5 | Selling expenses | $2,180,000.00 | $2,000,000.00 |
6 | Administrative expenses | 1,627,500.00 | 1,500,000.00 |
7 | Total operating expenses | $3,807,500.00 | $3,500,000.00 |
8 | Income from operations | $1,032,500.00 | $1,060,000.00 |
9 | Other income | 99,500.00 | 20,000.00 |
10 | $1,132,000.00 | $1,080,000.00 | |
11 | Other expense (interest) | 133,000.00 | 120,000.00 |
12 | Income before income tax | $999,000.00 | $960,000.00 |
13 | Income tax expense | 410,000.00 | 400,000.00 |
14 | Net income | $589,000.00 | $560,000.00 |
Marshall Inc. |
Comparative Balance Sheet |
December 31, 20Y2 and 20Y1 |
1 | 20Y2 | 20Y1 | |
2 | Assets | ||
3 | Current assets: | ||
4 | Cash | $1,050,000.00 | $950,000.00 |
5 | Marketable securities | 301,000.00 | 420,000.00 |
6 | Accounts receivable (net) | 584,000.00 | 500,000.00 |
7 | Inventories | 410,000.00 | 380,000.00 |
8 | Prepaid expenses | 109,000.00 | 20,000.00 |
9 | Total current assets | $2,454,000.00 | $2,270,000.00 |
10 | Long-term investments | 800,000.00 | 800,000.00 |
11 | Property, plant, and equipment (net) | 5,750,000.00 | 5,184,000.00 |
12 | Total assets | $9,004,000.00 | $8,254,000.00 |
13 | Liabilities | ||
14 | Current liabilities | $863,000.00 | $792,000.00 |
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 | $4,063,000.00 | $3,792,000.00 |
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 | 4,191,000.00 | 3,712,000.00 |
24 | Total stockholders’ equity | $4,941,000.00 | $4,462,000.00 |
25 | Total liabilities and stockholders’ equity | $9,004,000.00 | $8,254,000.00 |
Expert Answer:
Determine the measures for 20Y2 SNo 1 2 3 4 5 6 7 Particulars Working capital Current assets a Curre... View the full answer
Accounting
ISBN: 978-1337899451
27th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
