Instructions The comparative financial statements of Marshall Inc. are as follow
ID: 2591461 • Letter: I
Question
Instructions The comparative financial statements of Marshall Inc. are as follows. The market price of Marshal common stock was $82.60 on December 31, 20Y2. Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y:1 20Y2 20Y1 $3,704,000.00 3,264,000.00 2 Retained earnings, January 1 3Net income 4 Total 600,000.00 550,000.00 04000.00 $3,814,000.00 Dividends 6 On preferred stock 7On common stock 8 Total dividends $10,000.00 100,000.00 $110,000.00 194 000.00 $10,000.00 100,000.00 $110,000.00 704 000 00 9 Retained earnings December 31Explanation / Answer
Number of days sale in recievables = receivables/sales per day = 585000/29726.03 = 19.7
Sales per day = 10850000/365
Number of days sale in inventory = inventory turnover ratio/ 365 = 0.1
Ratio of Fixed Assets to Long term liablities = fixed asset/ long term liabilities = 5760000/3200000 = 1.8
Asset turover ratio = Net sales/average total assets = 10850000/8639000 = 1.3
Average total assets = 8254000+9024000/2
Return on total assets = EBIT/ Net assets = 1152000/9024000 = 12.8
Return on Stockholders equity = Net income/total stockholders equity = 600000/4944000 =12.1
return on common stockholders equity = net income/Common stockholders equity = 600000/4694000
Common Stockholders equty = common stock + retained earnings = 500000+4194000
Price earning ratio = Market price per share/EPS = 82.6/5.9 = 14