FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 55 on December 31, 20Y2.
Marshall Inc. | |||||
Comparative |
|||||
For the Years Ended December 31, 20Y2 and 20Y1 | |||||
20Y2 | 20Y1 | ||||
Retained earnings, January 1 | $3,112,575 | $2,638,225 | |||
Net income | 700,800 | 540,300 | |||
Dividends: | |||||
On |
(11,200) | (11,200) | |||
On common stock | (54,750) | (54,750) | |||
Retained earnings, December 31 | $3,747,425 | $3,112,575 |
Marshall Inc. | ||||
Comparative Income Statement | ||||
For the Years Ended December 31, 20Y2 and 20Y1 | ||||
20Y2 | 20Y1 | |||
Sales | $3,863,160 | $3,559,340 | ||
Cost of merchandise sold | 1,516,210 | 1,394,910 | ||
Gross profit | $2,346,950 | $2,164,430 | ||
Selling expenses | $731,580 | $918,970 | ||
Administrative expenses | 623,190 | 539,710 | ||
Total operating expenses | $1,354,770 | $1,458,680 | ||
Income from operations | $992,180 | $705,750 | ||
Other revenue and expense: | ||||
Other revenue | 52,220 | 45,050 | ||
Other expense (interest) | (248,000) | (136,800) | ||
Income before income tax expense | $796,400 | $614,000 | ||
Income tax expense | 95,600 | 73,700 | ||
Net income | $700,800 | $540,300 |
Marshall Inc. | ||||||
Comparative |
||||||
December 31, 20Y2 and 20Y1 | ||||||
20Y2 | 20Y1 | |||||
Assets | ||||||
Current assets: | ||||||
Cash | $698,750 | $697,040 | ||||
Marketable securities | 1,057,560 | 1,155,090 | ||||
737,300 | 693,500 | |||||
Inventories | 554,800 | 423,400 | ||||
Prepaid expenses | 132,198 | 139,410 | ||||
Total current assets | $3,180,608 | $3,108,440 | ||||
Long-term investments | 2,310,757 | 1,125,115 | ||||
Property, plant, and equipment (net) | 3,720,000 | 3,348,000 | ||||
Total assets | $9,211,365 | $7,581,555 | ||||
Liabilities | ||||||
Current liabilities | $993,940 | $1,388,980 | ||||
Long-term liabilities: | ||||||
Mortgage note payable, 8% | $1,390,000 | $0 | ||||
Bonds payable, 8% | 1,710,000 | 1,710,000 | ||||
Total long-term liabilities | $3,100,000 | $1,710,000 | ||||
Total liabilities | $4,093,940 | $3,098,980 | ||||
Preferred $0.70 stock, $40 par | $640,000 | $640,000 | ||||
Common stock, $10 par | 730,000 | 730,000 | ||||
Retained earnings | 3,747,425 | 3,112,575 | ||||
Total stockholders' equity | $5,117,425 | $4,482,575 | ||||
Total liabilities and stockholders' equity | $9,211,365 | $7,581,555 |
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.
***SEE ATTACHED PHOTO FOR QUESTIONS ASKED ABOUT THE INFORMATION ABOVE. I AM NEEDING NUMBERS 7,8,9 PLEASE***
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