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 | $ 66,400 | $ 66,400 | ||||
Retained earnings, December 31 | $ 4,365,600 | $ 3,614,400 |
Marshall Inc. | ||||
Comparative Income Statement | ||||
For the Years Ended December 31, 20Y2 and 20Y1 | ||||
20Y2 | 20Y1 | |||
Sales | $ 5,101,970 | $ 4,700,720 | ||
Cost of goods sold | 1,696,520 | 1,560,800 | ||
Gross profit | $ 3,405,450 | $ 3,139,920 | ||
Selling expenses | $ 1,194,050 | $ 1,450,030 | ||
Administrative expenses | 1,017,160 | 851,600 | ||
Total operating expenses | $2,211,210 | $2,301,630 | ||
Income from operations | $ 1,194,240 | $ 838,290 | ||
Other revenue | 62,860 | 53,510 | ||
$ 1,257,100 | $ 891,800 | |||
Other expense (interest) | 328,000 | 180,800 | ||
Income before income tax | $ 929,100 | $ 711,000 | ||
Income tax expense | 111,500 | 85,300 | ||
Net income | $ 817,600 | $ 625,700 |
Marshall Inc. | |||||||
Comparative Balance Sheet | |||||||
December 31, 20Y2 and 20Y1 | |||||||
20Y2 | 20Y1 | ||||||
Assets | |||||||
Current assets | |||||||
Cash | $ 924,380 | $ 797,480 | |||||
Marketable securities | 1,399,060 | 1,321,530 | |||||
Accounts receivable (net) | 905,200 | 854,100 | |||||
Inventories | 686,200 | 525,600 | |||||
Prepaid expenses | 174,888 | 159,500 | |||||
Total current assets | $ 4,089,728 | $ 3,658,210 | |||||
Long-term investments | 1,933,912 | 467,256 | |||||
Property, plant, and equipment (net) | 5,330,000 | 4,797,000 | |||||
Total assets | $ 11,353,640 | $ 8,922,466 | |||||
Liabilities | |||||||
Current liabilities | $ 1,278,040 | $ 1,438,066 | |||||
Long-term liabilities: | |||||||
Mortgage note payable, 8% | $ 1,840,000 | $ 0 | |||||
Bonds payable, 8% | 2,260,000 | 2,260,000 | |||||
Total long-term liabilities | $ 4,100,000 | $ 2,260,000 | |||||
Total liabilities | $ 5,378,040 | $ 3,698,066 | |||||
Stockholders' Equity | |||||||
Preferred $0.70 stock, $50 par | $ 750,000 | $ 750,000 | |||||
Common stock, $10 par | 860,000 | 860,000 | |||||
Retained earnings | 4,365,600 | 3,614,400 | |||||
Total stockholders' equity | $ 5,975,600 | $ 5,224,400 | |||||
Total liabilities and stockholders' equity | $ 11,353,640 | $ 8,922,466 |
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 | $ | 2,811,688 |
2. Current ratio | 3.2 | |
3. Quick ratio | 2.5 | |
4. Accounts receivable turnover | 11.6 | |
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 |
4. Accounts receivable turnover = Sales / Avg.Receivables
= 5,101,970 / ( 905,200 +854100)/2 = 5101970 / 879650 = 5.8
5. Number of days' sales in receivables = 365 / Receivables Turnover = 365 / 5.8 = 62.93 Days
6. Inventory turnover = Cost of goods sold / Avg.Inventory
= 1,696,520 / ( 686,200 + 525600 ) / 2 = 1696520 / 605900 = 2.8
7. Number of days' sales in inventory = 365 / Inventory turnover = 365 / 2.8 = 130.36 Days
8. Ratio of fixed assets to long-term liabilities = 5,330,000 /4100000 = 1.3
9. Ratio of liabilities to stockholders' equity = 5,378,040 /5975600 = 0.9
10. Times interest earned = Income from operations / Interest Expense = 1,194,240 /328000 = 3.64
11. Asset turnover = Sales / Avg. Total Assets = 5,101,970 / ( 11,353,640 + 8922466 ) /2 = 5101970 / 10138053 = 0.503
12. Return on total assets = Net Income / Avg. Total Assets = 817,600 / 10138053 = 8.06%
13. Return on stockholders’ equity = Net Income / Avg. Total Assets
= 817,600 / ( 5,975,600 + 5224400)/2 = 817600 / 5600000 = 14.6%
14. Return on common stockholders’ equity = (Net Income - preferred dividends)/ Avg. common stockholders equity)
= ( 817600 - 10500 ) / ( 860000 + 860000 + 4,365,600 + 3,614,400 ) / 2
= 807100 / 4850000 = 16.64%
15. Earnings per share on common stock = (Net Income - preferred dividends) / Outstanding Common Stock
= 807100 / 86000 = $9.38
16. Price-earnings ratio = Market Price / EPS = 62 / 9.38 = 6.61
17. Dividends per share of common stock = Dividend on common stock / Outstanding Common Stock
= 55900 / 86000 = $0.65
18. Dividend yield = Dividend per share / Market Price = $0.65 / $62 = 1.048%
NEED HELP ASAP PLEASE! (I already answered 1-4) The comparative financial statements of Marshall Inc. are...
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...
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 64 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 $ 4,159,100 $ 3,518,300 Net income 921,600 720,600 Total $5,080,700 $ 4,238,900 Dividends: On preferred stock $ 11,900 $ 11,900 On common stock 67,900 67,900 Total dividends $ 79,800 $ 79,800 Retained earnings, December 31...
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,...
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,...
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 common stock was $ 64 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 $1,313,800 $1,116,700 Net income 284,000 228,700 Total $1,597,800 $1,345,400 Dividends: On preferred stock $9,100 $9,100 On common stock 22,500 22,500 Total dividends $31,600 $31,600 Retained earnings, December 31 $1,566,200 $1,313,800 Marshall Inc. Comparative Income Statement...
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QUESTION BEGINNING AT #13 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...
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