**Answer:**

Marshall Inc.

Ratios:

1. Working Capital = Current assets - Current liabilities

= $2,464,000 - 880,000 = $1,584,000

2. Current ratio = Current Assets/Current Liabilities

= $2,464,000/880,000 = 2.8 : 1

3. Quick ratio = (Current Assets - Inventory)/Current Liabilities

= ($2,464,000 - 420,000)/880,000

= $2,044,000/880,000 = 2.3 : 1

4. Accounts receivable turnover = Average Accounts Receivable / Net Sales

= $542,500/10,850,000 = 0.05 times

Average receivables = ($585,000 + 500,000)/2 = $542,500

5. Number of days' sales in receivables = Days in the year/Accounts receivable turnover

= 365/0.05 = 7,300 days

6. Inventory turnover = Cost of goods sold / Average Inventory

= $6,000,000/400,000 = 15 times

Average Inventory = (Beginning inventory + Ending inventory) / 2

= ($420,000 + 380,000)/2 = $400,000

7. Number of days' sales in inventory = Number of days in a year divided by Inventory turnover ratio = 365 /15 = 24.3 days

8. Ratio of fixed assets to long-term liabilities = Fixed Assets/Long-term Liabilities = $5,760,000/3,200,000 = 1.8 : 1

9. Ratio of liabilities to stockholders' equity = Total Liabilities/Stockholders' equity = $4,080,000 / $4,944,000 = 0.83 or 80%

10. Times interest earned = Earnings before Interest and Taxes / Interest Expense = $1,152,000/132,000 = 8.7 times

11. Asset turnover = Sales Revenue / Average Total Assets

= $6,000,000/$8,639,000 = 0.7 or 70%

Average Total Assets = Beginning total assets + Ending total assets, all divided by 2

= ($9,024,000 + 8,254,000)/2 = $8,639,000

12. Return on total assets = EBIT/Average Total Assets

= $1,152,000/$8,639,000 = 13%

13. Return on stockholders' equity = Earnings after tax/Shareholders' equity = $600,000/$4,944,000 x 100 = 12%

14. Return on common stockholders' equity = EAT/Common Shareholders' Equity = $600,000 - 10,000/($4,944,000 - 250,000) x 100

= 12.6%

15. Earnings per share (EPS) on common stock = Net Income divided by the number of outstanding common shares = $600,000/100,000 = $6 per share.

16. Price-earnings ratio = Market price of shares/EPS = $82.80/$6 = 13.8

17. Dividends per share of common stock = Dividends/Common Stock shares = $100,000/100,000 shares = $1

18. Dividend yield = Dividend per share / Market price per share = $1/$82.80 = 1.2%

**Explanation:**

1. Working Capital is the difference between current assets and current liabilities.

2. Current ratio is a liquidity ratio of current assets over current liabilities.

3. Quick ratio is the current ratio modified with the subtraction of inventory.

4. Accounts receivable turnover is an accounting measure that shows how quickly customers pay for the credit sales.

5. Number of days' sales in receivables measures the number of days it takes a company to collect its credit sales. It is a function of the number of days in a year divided by the accounts receivable turnover ratio.

6. Inventory turnover is a ratio showing how many times a company has sold and replaced its inventory during a given period.

7. Number of days' sales in inventory is the result of dividing the days in the period by the inventory turnover formula. It shows the number of days inventory is held before being sold.

8. Ratio of fixed assets to long-term liabilities shows how much of long-term liabilities is represented in fixed assets.

9. Ratio of liabilities to stockholders' equity is a financial leverage ratio that shows the relationship between liabilities and stockholders' equity.

10. Times interest earned (TIE) ratio measures the ability of a company to settle its debt obligations based on its current income. To calculate the TIE number, take the Earnings before interest and taxes (EBIT) and divide by the total interest expense.

11. Asset turnover is a ratio of sales over average assets, which shows company's efficiency in using assets to generate sales.

12. Return on total assets measures the percentage of earnings before interest and taxes over the average total assets. It can be obtained by multiplying profit margin with total asset turnover.

13. Return on stockholders' equity is a financial ratio that is calculated by dividing a company's earnings after taxes (EAT) by the total shareholders' equity, and then multiplying the result by 100.

14. Return on common stockholders' equity measures the ratio of earnings after taxes less Preferred Stock Dividend over the common shareholders' equity.

15. Earnings per share on common stock is the ratio of earnings divided by the number of outstanding common stock shares. It measures the earnings per share that the company has generated for the common stockholders.

16. Price-earnings ratio is a ratio of the market price of shares over the earnings per share. It is used to determine if a company's share is overvalued or undervalued.

17. Dividends per share of common stock is the dividend paid divided by the number of outstanding common stock.

18. Dividend yield is the ratio of the dividend per share over the market price per share.