Question

The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common...

The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 59 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 $1,945,250 $1,654,850
Net income 438,000 338,900
Total $2,383,250 $1,993,750
Dividends:
On preferred stock $14,000 $14,000
On common stock 34,500 34,500
Total dividends $48,500 $48,500
Retained earnings, December 31 $2,334,750 $1,945,250
Marshall Inc.
Comparative Income Statement
For the Years Ended December 31, 20Y2 and 20Y1
   20Y2    20Y1
Sales $2,995,920 $2,760,260
Cost of goods sold 1,095,000 1,007,400
Gross profit $1,900,920 $1,752,860
Selling expenses $660,370 $805,710
Administrative expenses 562,540 473,200
Total operating expenses $1,222,910 $1,278,910
Income from operations $678,010 $473,950
Other revenue 35,690 30,250
$713,700 $504,200
Other expense (interest) 216,000 119,200
Income before income tax $497,700 $385,000
Income tax expense 59,700 46,100
Net income $438,000 $338,900
Marshall Inc.
Comparative Balance Sheet
December 31, 20Y2 and 20Y1
   20Y2    20Y1
Assets
Current assets
Cash $522,530 $436,960
Marketable securities 790,860 724,120
Accounts receivable (net) 540,200 511,000
Inventories 408,800 321,200
Prepaid expenses 98,863 87,390
Total current assets $2,361,253 $2,080,670
Long-term investments 1,377,722 321,139
Property, plant, and equipment (net) 2,970,000 2,673,000
Total assets $6,708,975 $5,074,809
Liabilities
Current liabilities $814,225 $779,559
Long-term liabilities:
Mortgage note payable, 8% $1,210,000 $0
Bonds payable, 8% 1,490,000 1,490,000
Total long-term liabilities $2,700,000 $1,490,000
Total liabilities $3,514,225 $2,269,559
Stockholders' Equity
Preferred $0.70 stock, $20 par $400,000 $400,000
Common stock, $10 par 460,000 460,000
Retained earnings 2,334,750 1,945,250
Total stockholders' equity $3,194,750 $2,805,250
Total liabilities and stockholders' equity $6,708,975 $5,074,809

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.

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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