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Question: measures of liquidity solvency and profitability the comparative financial statements...

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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 $ 54 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 $ 4,227,975 $ 3,575,225
Net income 963,600 732,300
Total $ 5,032,475 $ 4,307,525
Dividends
On preferred stock $ 12,600 $ 12,600
On common stock 66,950 66,950
Total dividends $ 79,550 $ 79,550
Retained earnings, December 31 $ 5,112,025 $ 4,227,975


Marshall Inc.
Comparative Income Statement
For the Years Ended December 31, 20Y2 and 20Y1
   20Y2    20Y1
Sales $ 5,617,350 $ 5,175,540
Cost of goods sold 1,880,480 1,730,040
Gross profit $ 3,736,870 $ 3,445,500
Selling expenses $ 1,279,700 $ 1,565,680
Administrative expenses 1,090,120 919,520
Total operating expenses 2,369,820 2,485,200
Income from operations $ 1,367,050 $ 960,300
Other income 71,950 61,300
$ 1,439,000 $ 1,021,600
Other expense (interest) 344,000 189,600
Income before income tax $ 1,095,000 $ 832,000
Income tax expense 131,400 99,700
Net income $ 963,600 $ 732,300


Marshall Inc.
Comparative Balance Sheet
December 31, 20Y2 and 20Y1
   Dec. 31, 20Y2    Dec. 31, 20Y1
Assets
Current assets
Cash $ 922,660 $ 1,022,850
Marketable securities 1,396,460 1,695,010
Accounts receivable (net) 1,014,700 956,300
Inventories 759,200 584,000
Prepaid expenses 174,564 204,570
Total current assets $ 4,267,584 $ 4,462,730
Long-term investments 3,678,061 2,164,985
Property, plant, and equipment (net) 4,730,000 4,257,000
Total assets $ 12,675,645 $ 10,884,715
Liabilities
Current liabilities $ 1,333,620 $ 2,356,740
Long-term liabilities
Mortgage note payable, 8 % $ 1,930,000 $ 0
Bonds payable, 8 % 2,370,000 2,370,000
Total long-term liabilities $ 4,300,000 $ 2,370,000
Total liabilities $ 5,633,620 $ 4,726,740
Stockholders' Equity
Preferred $ 0.70 stock, $ 50 par $ 900,000 $ 900,000
Common stock, $ 10 par 1,030,000 1,030,000
Retained earnings 5,112,025 4,227,975
Total stockholders' equity $ 7,042,025 $ 6,157,975
Total liabilities and stockholders' equity $ 12,675,645 $ 10,884,715

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 %
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