Question: Please help with questions 10-18 and show your steps as to how you arrived at your answer. Thank you so much! Measures of liquidity, solvency,
Please help with questions 10-18 and show your steps as to how you arrived at your answer. Thank you so much!




Measures of liquidity, solvency, and profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $82.60 on December 31, 20Y2. Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Retained earnings, January 1 $3,704,000 $ 600,000 $3,264,000 $ 550,000 Net income Dividends: On preferred stock On common stock (10,000) (100,000) $ 490,000 $4,194,000 (10,000) (100,000) $ 440,000 $3,704,000 Increase in retained earnings Retained earnings, December 31 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales 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 $ 10,850,000 (6,000,000) $ 4,850,000 $ (2,170,000) (1,627,500) $(3,797,500) $ 1,052,500 $10,000,000 (5,450,000) $ 4,550,000 $ (2,000,000) (1,500,000) $ (3,500,000) $ 1,050,000 99,500 (132,000) $ 1,020,000 (420,000) $ 600,000 20,000 (120,000) $ 950,000 (400,000) $ 550,000 Income tax expense Net income Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 20Y2 20Y1 Assets Current assets: Cash Marketable securities Accounts receivable (net) Inventories Prepaid expenses Total current assets Long-term investments Property, plant, and equipment (net) Total assets $1,050,000 301,000 585,000 420,000 108,000 $ 2,464,000 800,000 5,760,000 $ 9,024,000 $ 950,000 420,000 500,000 380,000 20,000 $2,270,000 800,000 5,184,000 $8,254,000 Liabilities $ 880,000 $ 800,000 $ 200,000 3,000,000 $ 3,200,000 $ 4,080,000 $ 0 3,000,000 $3,000,000 $3,800,000 Current liabilities Long-term liabilities: Mortgage note payable, 6% Bonds payable, 4% Total long-term liabilities Total liabilities Stockholders' Equity Preferred 4% stock, $5 par Common stock, $5 par Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 250,000 500,000 4,194,000 $ 4,944,000 $ 9,024,000 $ 250,000 500,000 3,704,000 $4,454,000 $8,254,000 Determine the following measures for 2012. Round to one decimal place, including percentages, except for per- share amounts, which should be rounded to the nearest cent. 1. Working Capital 1,584,000 2. Current ratio 2.8 3. Quick ratio 2.2 4. Accounts receivable turnover 20 5. Number of days' sales in receivables 18.3 6. Inventory turnover 15.00 7. Number of days' sales in inventory 24.3 8. Ratio of fixed assets to long-term liabilities 1.8 9. Ratio of liabilities to stockholders' equity 0.83 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 %
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
