Please, someone, help me! If you do please show working out for me to understand. Thank you.
Measures of liquidity, Solvency, and Profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 65 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 | $1,262,900 | $1,069,600 | ||||
Net income | 300,000 | 219,100 | ||||
Total | $1,562,900 | $1,288,700 | ||||
Dividends: | ||||||
On preferred stock | $9,800 | $9,800 | ||||
On common stock | 16,000 | 16,000 | ||||
Total dividends | $25,800 | $25,800 | ||||
Retained earnings, December 31 | $1,537,100 | $1,262,900 |
Marshall Inc. | ||||
Comparative Income Statement | ||||
For the Years Ended December 31, 20Y2 and 20Y1 | ||||
20Y2 | 20Y1 | |||
Sales | $1,799,450 | $1,657,950 | ||
Cost of goods sold | 613,200 | 564,140 | ||
Gross profit | $1,186,250 | $1,093,810 | ||
Selling expenses | $404,140 | $502,320 | ||
Administrative expenses | 344,260 | 295,010 | ||
Total operating expenses | $748,400 | $797,330 | ||
Income from operations | $437,850 | $296,480 | ||
Other revenue | 23,050 | 18,920 | ||
$460,900 | $315,400 | |||
Other expense (interest) | 120,000 | 66,400 | ||
Income before income tax | $340,900 | $249,000 | ||
Income tax expense | 40,900 | 29,900 | ||
Net income | $300,000 | $219,100 |
Marshall Inc. | |||||||
Comparative Balance Sheet | |||||||
December 31, 20Y2 and 20Y1 | |||||||
20Y2 | 20Y1 | ||||||
Assets | |||||||
Current assets | |||||||
Cash | $243,620 | $332,080 | |||||
Marketable securities | 368,720 | 550,300 | |||||
Accounts receivable (net) | 321,200 | 299,300 | |||||
Inventories | 248,200 | 189,800 | |||||
Prepaid expenses | 46,091 | 66,420 | |||||
Total current assets | $1,227,831 | $1,437,900 | |||||
Long-term investments | 1,182,659 | 584,178 | |||||
Property, plant, and equipment (net) | 1,650,000 | 1,485,000 | |||||
Total assets | $4,060,490 | $3,507,078 | |||||
Liabilities | |||||||
Current liabilities | $423,390 | $814,178 | |||||
Long-term liabilities: | |||||||
Mortgage note payable, 8% | $670,000 | $0 | |||||
Bonds payable, 8% | 830,000 | 830,000 | |||||
Total long-term liabilities | $1,500,000 | $830,000 | |||||
Total liabilities | $1,923,390 | $1,644,178 | |||||
Stockholders' Equity | |||||||
Preferred $0.70 stock, $20 par | $280,000 | $280,000 | |||||
Common stock, $10 par | 320,000 | 320,000 | |||||
Retained earnings | 1,537,100 | 1,262,900 | |||||
Total stockholders' equity | $2,137,100 | $1,862,900 | |||||
Total liabilities and stockholders' equity | $4,060,490 | $3,507,078 |
Required:
Determine the following measures for 20Y2, 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 | ||
5. Number of days' sales in receivables | days | |
6. Inventory turnover | ||
7. Number of days' sales in inventory | days | |
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 | % |
Feedback
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 goods sold by average inventory. Average Inventory = (Beginning Inventories + Ending Inventories) ÷ 2.
7. Divide average inventory by average daily cost of goods sold. Average Inventory = (Beginning Inventories + Ending Inventories) ÷ 2. Average daily cost of goods sold is cost of goods 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.
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 = (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.
As per HOMEWORKLIB RULES we can only solve 1st 4 parts of the question, but I am solving as much is feasible | ||
20Y2 | Calculation | |
Current Ratio(Current Assets/Current liabilities) | 2.9 | $1,227,831/$423,390 |
Acid-test Ratio[(Current Assets - Inventories - Prepaid expenses)/Current laibilities] | 2.2 | ($1,227,831-248,200-46,091)/$423,390 |
Average accounts receivable =(Beginning Accounts Receivable+Clsoing Accounts Receivable)/2 | $3,10,250 | ($299,300+321,200)/2 |
Accounts receivable turnover =Net sales / Average accounts receivable | 5.8 | $1,799,450/$310,250 |
Average collection period =365 days/Accounts receivable turnover | 62.9 days | 365 days / 5.8 |
Average Inventory =(Opening Inventory + Closing Inventory)/2 | $2,19,000 | ($189,800+248,200)/2 |
Inventory Turnover ratio =Cost of goods sold / Average Inventory | 2.8 | $613,200/$219,000 |
Avearage Sales period =365 days / Inventory Turnover ratio | 130.4 days | 365 days/2.8 |
Times Interest earned ratio =Earning before interest & taxes / Interest expenses | 3.8 | $460,900/$120,000 |
Asset Turnover Ratio(Net Sales / Average Total Assets) | 0.5 | [$1,799,450/($3,507,078+4,060,490)/2] |
Return on Total Asset(Net Income / Average Total Assets) | 7.9% | $300,000/3,783,784 |
Please, someone, help me! If you do please show working out for me to understand. Thank...
NEED HELP ASAP PLEASE! (I already answered 1-4) The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 62 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 $ 3,614,400 $ 3,055,100 Net income 817,600 625,700 Total $4,432,000 $ 3,680,800 Dividends: On preferred stock $ 10,500 $ 10,500 On common stock 55,900 55,900 Total dividends...
Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Retained earnings, January 1 $1,793,525 $1,515,775 Net income 425,600 310,400 Total $2,219,125 $1,826,175 Dividends: On preferred stock $13,300 $13,300 On common stock 19,350 19,350 Total dividends $32,650 $32,650 Retained earnings, December 31 $2,186,475 $1,793,525 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales $2,205,330 $2,031,930 Cost of goods sold 854,100 785,770 Gross profit $1,351,230 $1,246,160...
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall Inc. common stock was $ 62 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 $ 2,805,100 $ 2,360,600 Net income 668,800 483,500 Total $ 3,473,900 $ 2,844,100 Dividends On preferred stock $ 8,400 $ 8,400 On common stock 30,600 30,600 Total dividends $ 39,000 $ 39,000...
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall Inc. common stock was $ 62 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 $ 1,652,575 $ 1,392,225 Net income 379,600 285,100 Total $ 2,032,175 $ 1,677,325 Dividends On preferred stock $ 6,300 $ 6,300 On common stock 18,450 18,450 Total dividends $ 24,750 $ 24,750 Retained earnings,...
Measures of liquidity, Solvency and Profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall Inc. common stock was $ 68 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 $ 1,407,900 $ 1,190,000 Net income 330,000 243,700 Total $ 1,737,900 $ 1,433,700 Dividends On preferred stock $ 10,500 $ 10,500 On common stock 15,300 15,300 Total dividends $ 25,800...
Measures of liquidity, Solvency and Profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall Inc. common stock was $ 59 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 $ 1,659,275 $ 1,404,525 Net income 374,400 287,700 Total $ 2,033,675 $ 1,692,225 Dividends On preferred stock $ 6,300 $ 6,300 On common stock 26,650 26,650 Total dividends...
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall Inc. common stock was $ 62 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 $ 2,805,100 $ 2,360,600 Net income 668,800 483,500 Total $ 3,473,900 $ 2,844,100 Dividends On preferred stock $ 8,400 $ 8,400 On common stock 30,600 30,600 Total dividends $ 39,000 $ 39,000...
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall Inc. common stock was $ 61 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 $ 1,312,050 $ 1,109,050 Net income 280,000 227,100 Total $ 1,592,050 $ 1,336,150 Dividends On preferred stock $ 9,100 $ 9,100 On common stock 15,000 15,000 Total dividends $ 24,100 $ 24,100 Retained earnings,...
Measures of liquidity, Solvency, and Profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 63 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 $1,022,050 $862,950 Net income 233,600 176,800 Total $1,255,650 $1,039,750 Dividends: On preferred stock $7,700 $7,700 On common stock 10,000 10,000 Total dividends $17,700 $17,700 Retained earnings, December 31 $1,237,950...
Measures of liquidity, Solvency, and Profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 58 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 $1,802,125 $1,537,175 Net income 425,600 314,800 Total $2,227,725 $1,851,975 Dividends: On preferred stock $13,300 $13,300 On common stock 36,550 36,550 Total dividends $49,850 $49,850 Retained earnings, December 31 $2,177,875...