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 $ 56 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			$ 1,942,900		$ 1,649,000
Net income			438,000		337,700
Total			$ 2,293,300		$ 1,986,700
Dividends
	On preferred stock		$ 7,000		$ 7,000
	On common stock		36,800		36,800
		Total dividends	$ 43,800		$ 43,800
Retained earnings, December 31			$ 2,337,100		$ 1,942,900

Marshall Inc.
Comparative Income Statement
For the Years Ended December 31, 20Y2 and 20Y1
	20Y2		20Y1
Sales	$ 2,609,750		$ 2,404,520
Cost of goods sold	899,360		827,410
Gross profit	$ 1,710,390		$ 1,577,110
Selling expenses	$ 578,010		$ 708,850
Administrative expenses	492,370		416,310
Total operating expenses	1,070,380		1,125,160
Income from operations	$ 640,010		$ 451,950
Other income	33,690		28,850
	$ 673,700		$ 480,800
Other expense (interest)	176,000		96,800
Income before income tax	$ 497,700		$ 384,000
Income tax expense	59,700		46,300
Net income	$ 438,000		$ 337,700

Marshall Inc.
Comparative Balance Sheet
December 31, 20Y2 and 20Y1
			Dec. 31, 20Y2		Dec. 31, 20Y1
Assets
Current assets
	Cash		$ 536,140		$ 416,030
	Marketable securities		811,450		689,410
	Accounts receivable (net)		489,100		459,900
	Inventories		365,000		277,400
	Prepaid expenses		101,436		83,210
		Total current assets	$ 2,303,126		$ 1,925,950
Long-term investments			1,131,364		395,490
Property, plant, and equipment (net)			2,640,000		2,376,000
Total assets			$ 6,074,490		$ 4,697,440
Liabilities
Current liabilities			$ 677,390		$ 684,540
Long-term liabilities
	Mortgage note payable, 8 %		$ 990,000		$ 0
	Bonds payable, 8 %		1,210,000		1,210,000
		Total long-term liabilities	$ 2,200,000		$ 1,210,000
Total liabilities			$ 2,877,390		$ 1,894,540
Stockholders' Equity
Preferred $ 0.70 stock, $ 40 par			$ 400,000		$ 400,000
Common stock, $ 10 par			460,000		460,000
Retained earnings			2,337,100		1,942,900
	Total stockholders' equity		$ 3,197,100		$ 2,802,900
Total liabilities and stockholders' equity			$ 6,074,490		$ 4,697,440

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		%