|
For the Years Ended December 31, 20Y2 and 20Y1
|
1
|
|
20Y2
|
20Y1
|
|
2
|
Retained earnings, January 1
|
$3,692,000.00
|
$3,262,000.00
|
|
3
|
Net income
|
610,000.00
|
540,000.00
|
|
4
|
Total
|
$4,302,000.00
|
$3,802,000.00
|
|
5
|
Dividends:
|
|
|
|
6
|
On preferred stock
|
$10,000.00
|
$10,000.00
|
|
7
|
On common stock
|
100,000.00
|
100,000.00
|
|
8
|
Total dividends
|
$110,000.00
|
$110,000.00
|
|
9
|
Retained earnings, December 31
|
$4,192,000.00
|
$3,692,000.00
|
|
Marshall Inc.
|
|
Comparative Income Statement
|
|
For the Years Ended December 31, 20Y2 and 20Y1
|
|
1
|
|
20Y2
|
20Y1
|
|
2
|
Sales
|
$10,860,000.00
|
$10,000,000.00
|
|
3
|
Cost of goods sold
|
6,000,000.00
|
5,460,000.00
|
|
4
|
Gross profit
|
$4,860,000.00
|
$4,540,000.00
|
|
5
|
Selling expenses
|
$2,160,000.00
|
$2,000,000.00
|
|
6
|
Administrative expenses
|
1,627,500.00
|
1,500,000.00
|
|
7
|
Total operating expenses
|
$3,787,500.00
|
$3,500,000.00
|
|
8
|
Income from operations
|
$1,072,500.00
|
$1,040,000.00
|
|
9
|
Other revenue
|
99,500.00
|
20,000.00
|
|
10
|
|
$1,172,000.00
|
$1,060,000.00
|
|
11
|
Other expense (interest)
|
132,000.00
|
120,000.00
|
|
12
|
Income before income tax
|
$1,040,000.00
|
$940,000.00
|
|
13
|
Income tax expense
|
430,000.00
|
400,000.00
|
|
14
|
Net income
|
$610,000.00
|
$540,000.00
|
|
Marshall Inc.
|
|
Comparative Balance Sheet
|
|
December 31, 20Y2 and 20Y1
|
|
1
|
|
20Y2
|
20Y1
|
|
2
|
Assets
|
|
|
|
3
|
Current assets:
|
|
|
|
4
|
Cash
|
$1,050,000.00
|
$950,000.00
|
|
5
|
Marketable securities
|
301,000.00
|
420,000.00
|
|
6
|
Accounts receivable (net)
|
584,000.00
|
500,000.00
|
|
7
|
Inventories
|
430,000.00
|
380,000.00
|
|
8
|
Prepaid expenses
|
109,000.00
|
20,000.00
|
|
9
|
Total current assets
|
$2,474,000.00
|
$2,270,000.00
|
|
10
|
Long-term investments
|
800,000.00
|
800,000.00
|
|
11
|
Property, plant, and equipment (net)
|
5,750,000.00
|
5,184,000.00
|
|
12
|
Total assets
|
$9,024,000.00
|
$8,254,000.00
|
|
13
|
Liabilities
|
|
|
|
14
|
Current liabilities
|
$882,000.00
|
$812,000.00
|
|
15
|
Long-term liabilities:
|
|
|
|
16
|
Mortgage note payable, 6%,
|
$200,000.00
|
$0.00
|
|
17
|
Bonds payable, 4%,
|
3,000,000.00
|
3,000,000.00
|
|
18
|
Total long-term liabilities
|
$3,200,000.00
|
$3,000,000.00
|
|
19
|
Total liabilities
|
$4,082,000.00
|
$3,812,000.00
|
|
20
|
Stockholders’ Equity
|
|
|
|
21
|
Preferred 4% stock, $5 par
|
$250,000.00
|
$250,000.00
|
|
22
|
Common stock, $5 par
|
500,000.00
|
500,000.00
|
|
23
|
Retained earnings
|
4,192,000.00
|
3,692,000.00
|
|
24
|
Total stockholders’ equity
|
$4,942,000.00
|
$4,442,000.00
|
|
25
|
Total liabilities and stockholders’ equity
|
$9,024,000.00
|
$8,254,000.00
|
Determine the following measures for 20Y2 (round to one decimal
place, including percentages, except for per-share amounts): Assume
a 365-day year.
| 1. |
Working capital |
| 2. |
Current ratio |
| 3. |
Quick ratio |
| 4. |
Accounts receivable turnover |
| 5. |
Number of days’ sales in receivables |
| 6. |
Inventory turnover |
| 7. |
Number of days’ sales in inventory |
| 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 |
Questions
Shaded cells have feedback.
Determine the following measures for 20Y2 (round to one decimal
place, including percentages, except for per-share amounts): Assume
a 365-day year.
| 1. Working Capital |
$ |
| 2. Current ratio |
|
| 3. Quick ratio |
|
| 4. Accounts receivable turnover |
|
| 5. Number of days' sales in receivables |
|
| 6. Inventory turnover |
|
| 7. Number of days’ sales in inventory |
|
| 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 |
% |
|