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Nineteen Measures of Solvency and Profitability The comparative financial statements of Blige Inc. are as follows....

Nineteen Measures of Solvency and Profitability

The comparative financial statements of Blige Inc. are as follows. The market price of Blige Inc. common stock was $67 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 $1,928,600 $1,628,300
Add net income for year 456,000 333,500
Total $2,384,600 $1,961,800
Deduct dividends
On preferred stock $5,600 $5,600
On common stock 27,600 27,600
Total $33,200 $33,200
Retained earnings, December 31 $2,351,400 $1,928,600
Blige Inc.
Comparative Income Statement
For the Years Ended December 31, 2016 and 2015
    2016     2015
Sales $2,461,400 $2,264,500
Sales returns and allowances 12,250 7,960
Sales $2,449,150 $2,256,540
Cost of goods sold 950,460 874,420
Gross profit $1,498,690 $1,382,120
Selling expenses $461,380 $594,180
Administrative expenses 393,020 348,960
Total operating expenses 854,400 943,140
Income from operations $644,290 $438,980
Other income 33,910 28,020
$678,200 $467,000
Other expense (interest) 160,000 88,000
Income before income tax $518,200 $379,000
Income tax expense 62,200 45,500
Net income $456,000 $333,500
Blige Inc.
Comparative Balance Sheet
December 31, 2016 and 2015
    Dec. 31, 2016     Dec. 31, 2015
Assets
Current assets
Cash $310,850 $506,270
Temporary investments 470,480 838,970
Accounts receivable (net) 459,900 430,700
Inventories 350,400 262,800
Prepaid expenses 58,818 101,250
Total current assets $1,650,448 $2,139,990
Long-term investments 1,730,072 919,490
Property, plant, and equipment (net) 2,400,000 2,160,000
Total assets $5,780,520 $5,219,480
Liabilities
Current liabilities $569,120 $1,330,880
Long-term liabilities
Mortgage note payable, 8%, due 2021 $900,000 $0
Bonds payable, 8%, due 2017 1,100,000 1,100,000
Total long-term liabilities $2,000,000 $1,100,000
Total liabilities $2,569,120 $2,430,880
Stockholders' Equity
Preferred $0.7 stock, $50 par $400,000 $400,000
Common stock, $10 par 460,000 460,000
Retained earnings 2,351,400 1,928,600
Total stockholders' equity $3,211,400 $2,788,600
Total liabilities and stockholders' equity $5,780,520 $5,219,480

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 %

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