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

Question

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 2,476,050 $2,094,050 Net income Total Dividends: 428,900 $3,030,850 2,522,950 554,800 On preferred stock On common stock Total dividends 7,000 39,900 $46,900 46,900 7,000 39,900 Retained earnings, December 31 $ 2,983,950 $ 2,476,050 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Income from operations Other revenue 3,394,500 $ 3,127,570 996,650 $2,311,180 $ 2,130,920 821,990 988,700 580,660 1,522,210 1,569,360 $ 788,970 561,560 35,840 830,500 597,400 110,400 Income before income tax 630,500 $ 487,000 58,100 554,800 428,900 1,083,320 700,220 41,530 Other expense (interest) 200,000 Income tax expense 75,700 Net income Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 Dec. 31, 20Y2 Dec. 31, 20Y1 Assets Current assets

Explanation / Answer

1) Working capital = 2526744-743160 = 1783584

2) Current ratio = 2526744/743160 = 3.4 : 1

3) Quick ratio = (2526744-438000-105324)/743160 = 2.7:1

4) Account receivable turnover :

Average receivable = (438000+335800/2) = 386900

Account receivable turnover = 3394500/386900 = 8.8 Times

5) Number of days sales in receivable = 365/8.8 = 41.5 Days

Note : Please post whole question in group of 4-4 question

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