Question

The comparative financial statements of Blige Inc. are as follows. The market price of Blige Inc. common stock was $53 on December 31, 2016.

Blige Inc.
Comparative Retained Earnings Statement
For the Years Ended December 31, 2016 and 2015
			2016		2015
Retained earnings, January 1			$2,840,700		$2,412,700
Add net income for year			624,800		494,200
Total			$3,465,500		$2,906,900
Deduct dividends
	On preferred stock		$8,400		$8,400
	On common stock		57,800		57,800
		Total	$66,200		$66,200
Retained earnings, December 31			$3,399,300		$2,840,700

Blige Inc.
Comparative Income Statement
For the Years Ended December 31, 2016 and 2015
	2016		2015
Sales	$4,236,830		$3,897,900
Sales returns and allowances	21,080		13,700
Sales	$4,215,750		$3,884,200
Cost of goods sold	1,451,240		1,335,140
Gross profit	$2,764,510		$2,549,060
Selling expenses	$968,550		$1,171,230
Administrative expenses	825,060		687,870
Total operating expenses	1,793,610		1,859,100
Income from operations	$970,900		$689,960
Other income	51,100		44,040
	$1,022,000		$734,000
Other expense (interest)	312,000		172,000
Income before income tax	$710,000		$562,000
Income tax expense	85,200		67,800
Net income	$624,800		$494,200

Blige Inc.
Comparative Balance Sheet
December 31, 2016 and 2015
			Dec. 31, 2016		Dec. 31, 2015
Assets
Current assets
	Cash		$830,490		$550,180
	Temporary investments		1,256,960		911,720
	Accounts receivable (net)		788,400		744,600
	Inventories		584,000		452,600
	Prepaid expenses		157,117		110,040
		Total current assets	$3,616,967		$2,769,140
Long-term investments			1,139,563		-578,139
Property, plant, and equipment (net)			5,070,000		4,563,000
Total assets			$9,826,530		$6,754,001
Liabilities
Current liabilities			$1,247,230		$483,301
Long-term liabilities
	Mortgage note payable, 8%, due 2021		$1,750,000		$0
	Bonds payable, 8%, due 2017		2,150,000		2,150,000
		Total long-term liabilities	$3,900,000		$2,150,000
Total liabilities			$5,147,230		$2,633,301
Stockholders' Equity
Preferred $0.7 stock, $50 par			$600,000		$600,000
Common stock, $10 par			680,000		680,000
Retained earnings			3,399,300		2,840,700
	Total stockholders' equity		$4,679,300		$4,120,700
Total liabilities and stockholders' equity			$9,826,530		$6,754,001

Required:

Determine the following measures for 2016, 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.

1. Working capital	$
2. Current ratio
3. Quick ratio
4. Accounts receivable turnover
5. Number of days' sales in receivables		days
6. Inventory turnover
7. Number of days' sales in inventory		days
8. Ratio of fixed assets to long-term liabilities
9. Ratio of liabilities to stockholders' equity
10. Number of times interest charges are earned
11. Number of times preferred dividends are earned
12. Ratio of sales to assets
13. Rate earned on total assets		%
14. Rate earned on stockholders' equity		%
15. Rate earned on common stockholders' equity		%
16. Earnings per share on common stock	$
17. Price-earnings ratio
18. Dividends per share of common stock	$
19. Dividend yield		%

Answer 1