Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 2012 and 201 Retained earnings, January 1 Net income Dividends: On preferred stock On common stock Retained earnings, December 31 2012 2011 $3,902,850 $3,303,850 852,000 676,700 (14,000) (14,000) (63,700) (63,700) $4,677,150 $3,902,850 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 2012 and 2011 2012 2011 Sales $4,720,180 $4,348,960 Cost of merchandise sold 1,817,700 1,672,280) Gross profit $2,902,480 $2,676,680 Selling expenses $910,000 $1,129,050 Administrative expenses 775,690 Total operating expenses $1,686,290 663,090 $1,792,140 Income from operations $1,216,190 $884,540 Previous Check My Work Other revenue and expense: Other revenue 64,010 56,460 Other expense (interest) (312,000) (172,000) Income before income tax expense $968,200 $769,000 Income tax expense 116,200 92,300 Net income $852,000 $676,700 Marshall Inc. Comparative Balance Sheet December 31, 2012 and 20Y1 20Y2 20Y1 Current assets: Cash Marketable securities Accounts receivable (net) Inventories Prepaid expenses Total current assets. Long-term investments Property, plant, and equipment (net) Total assets Asset $838,090 $847,500 1,268,460 1,404,430 919,800 861,400 686,200 525,600 158,554 169,500 $3,871,104 $3,808,430 2,945,766 1,268,414 4,680,000 4,212,000 $11,496,870 $9,288,844 Liabilities otal assets Current liabilities $11,496.870 $9,280,844 Liabilities $1,209,720 $1,525,994 Long-term laboties: Mortgage note payable, 8% Bonds payable, 8% Total long-term labilities Total liabilities $1,750,000 50 2,150,000 2,150,000, $3,900,000 $2,150,000 $5,109,720 $3,675,994 Stockholders' Equity Preferred $0.70 stock, $40 par $800,000 $800,000 Common stock, $10 par 910,000 Retained earnings 4,677,150 910,000 3,902,850 Total stockholders' equity Total liabilities and stockholders' equity $6,387,150 $11,496,870 $5,612,850 $9,288,844 Required: Determine the following measures for 2012, 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 i 5. Number of days sales in receivables 6. Inventory turnover 2,661,384 3.2 2.5 5.3 days Previous Not 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 CBOOK 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 2,661,384 3.2 V 2.5 5.3 days days 1.2 0.8 % % % % Chex My Wo 1. Subtract current liabilities from current assets. 2. Divide current assets by current liabilities. 3. Divide quick assets by current liabilities. Quick assets are cash, temporary investments, and receivables. 4. Divide sales by average accounts receivable. Average Accounts receivable (Beginning Net Accounts Receivable + Ending Net Accounts Receivable) +2. 5. Divide average accounts receivable by average daily sales. Average Accounts receivable (Beginning Net Accounts Receivable + Ending Net Accounts Receivable) +2. Average daily sales are sales divided by 365 days. 6. Divide cost of merchandise sold by average merchandise inventory. Average Inventory 7. Divide average inventory by average daily cost of merchandise sold. Average Inventory of merchandise sold is cost of merchandise sold divided by 365 days. 8. Divide property, plant, and equipment (net) by long-term liabilities. 9. Divide total liabilities by total stockholders' equity. 10. Divide the sum of income before income tax plus interest expense by interest expense. (Beginning Inventories + Ending Inventories) + 2. (Beginning Inventories + Ending Inventories) +2. Average daily cost 11. Divide sales by average total assets. Average total assets (Beginning total assets +Ending total assets) + 2. 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 equity) +2. (Beginning total stockholders' equity + Ending total stockholders 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). Set + Remed 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