Question

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 2012 20Y1 Retained earnings, January 1 $ 1,190,000 $ 1,407,900 330,000 Net income 243,700 Total $ 1,737,900 $ 1,433,700 Dividends $ 10,500 $ 10,500 15,300 15,300 On preferred stock On common stock Total dividends Retained earnings, December 31 $ 25,800 $ 25,800 $ 1,712,100 $ 1,407,900

I have answered every question except for 5 and 12-15. I cannot seem to get them right. Thank you.

Answer 1

5)	Average Account Receivables = (beginning Account Receivables + ending Account Receivables)/2
	= ( $394200+372300)/2
	= $ 383250
	Account Receivables Turnover Ratio = Sales / average Account Receivables
	= $2107875/383250
	=5.5 times
	Number of days sales in receivables = 365/ Account Receivables turnover ratio
	= 365 days /5.5
	=66.4 days
12)	Average Assets = (beginning Assets + ending Assets)/2
	= ( $3810590+4939410)/2
	= $ 4375000
	Return On Assets = Net Income / Average Assets
	= $330000/4375000
	=7.5 %
13)	Average Stockholders Equity = (beginning Stockholders Equity + ending Stockholders Equity)/2
	= ( $2047900+2352100)/2
	= $ 2200000
	Return On Stockholders Equity = Net Income / Average Stockholders Equity
	= $330000/2200000
	=15 %
14)	Average Common Stockholders Equity = (beginning Stockholders Equity + ending Stockholders Equity)/2
	= ( $1747900+2052100)/2
	= $ 1900000
	Return On Common Stockholders Equity = (Net Income - preferred dividend)/ Average Stockholders Equity
	= $319500/1900000
	=16.8 %
15)	Earning Per Shares On Common Stock = Net Income- preferred dividend / Average Number Common Stock Outstanding
	= $319500/34000
	= $ 9.4
Let me know still wrong, if any. Please upvote.