Question

Measures of liquidity, Solvency, and Profitability

The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 57 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			$1,692,975		$1,439,325
Net income			395,200		294,800
Total			$2,088,175		$1,734,125
Dividends:
	On preferred stock		$11,900		$11,900
	On common stock		29,250		29,250
		Total dividends	$41,150		$41,150
Retained earnings, December 31			$2,047,025		$1,692,975

Marshall Inc.
Comparative Income Statement
For the Years Ended December 31, 20Y2 and 20Y1
	20Y2		20Y1
Sales	$2,226,135		$2,051,070
Cost of goods sold	783,290		720,630
Gross profit	$1,442,845		$1,330,440
Selling expenses	$478,980		$595,260
Administrative expenses	408,025		349,590
Total operating expenses	$887,005		$944,850
Income from operations	$555,840		$385,590
Other revenue	29,260		24,610
	$585,100		$410,200
Other expense (interest)	136,000		75,200
Income before income tax	$449,100		$335,000
Income tax expense	53,900		40,200
Net income	$395,200		$294,800

Marshall Inc.
Comparative Balance Sheet
December 31, 20Y2 and 20Y1
			20Y2		20Y1
Assets
Current assets
	Cash		$374,900		$429,280
	Marketable securities		567,420		711,360
	Accounts receivable (net)		401,500		379,600
	Inventories		306,600		233,600
	Prepaid expenses		70,926		85,860
		Total current assets	$1,721,346		$1,839,700
Long-term investments			1,067,299		658,369
Property, plant, and equipment (net)			2,210,000		1,989,000
Total assets			$4,998,645		$4,487,069
Liabilities
Current liabilities			$521,620		$1,124,094
Long-term liabilities:
	Mortgage note payable, 8%		$760,000		$0
	Bonds payable, 8%		940,000		940,000
		Total long-term liabilities	$1,700,000		$940,000
Total liabilities			$2,221,620		$2,064,094
Stockholders' Equity
Preferred $0.70 stock, $20 par			$340,000		$340,000
Common stock, $10 par			390,000		390,000
Retained earnings			2,047,025		1,692,975
Total stockholders' equity			$2,777,025		$2,422,975
Total liabilities and stockholders' equity			$4,998,645		$4,487,069

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		%

Answer 1

	Please note that as per the HOMEWORKLIB RULES first four question are answered please do not dislike for the same
	1	Working capital
		Working capital=Current asset- current liabilities
		working capital=	=1,721,346- 521,620
		working capital=	1,199,726
		Current asset	1,721,346
		Current liabilities	521,620
	2	Current ratio
		Current ratio=	Current asset
			Current liabilities
		Current ratio=	1,721,346
			521,620
		Current ratio=	3.3
	3	Quick ratio
		Quick ratio =	Cash+Accounst receivable+marketable securities
			Current liabilities
		Quick ratio =	=374,900+567,420+401,500
			521,620
		Quick ratio =	1,343,820
			521,620
		Quick ratio =	2.6
	4	Accounts receivable Turnover
	Note:	It is assumed that all sales are on credit
		Accounts receivable Turnover=	Credit sales
			Average Accounts receivable
		Accounts receivable Turnover=	2,226,135
			390,550
		Accounts receivable Turnover=	5.7
		Average Accounts receivable=	Accounts Receivable for 20Y2+Accounts Receivable for 20Y1
			2
		Average Accounts receivable=	=401,500+379,600
			2
		Average Accounts receivable=	781,100
			2
		Average Accounts receivable=	390,550