Question

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 $63 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			$913,750		$770,650
Add net income for year			207,200		157,800
Total			$1,120,950		$928,450
Deduct dividends
	On preferred stock		$6,300		$6,300
	On common stock		8,400		8,400
		Total	$14,700		$14,700
Retained earnings, December 31			$1,106,250		$913,750

Blige Inc.
Comparative Income Statement
For the Years Ended December 31, 2016 and 2015
	2016		2015
Sales	$1,276,550		$1,174,400
Sales returns and allowances	6,350		4,130
Sales	$1,270,200		$1,170,270
Cost of goods sold	429,970		395,570
Gross profit	$840,230		$774,700
Selling expenses	$295,980		$358,370
Administrative expenses	252,130		210,470
Total operating expenses	548,110		568,840
Income from operations	$292,120		$205,860
Other income	15,380		13,140
	$307,500		$219,000
Other expense (interest)	72,000		40,000
Income before income tax	$235,500		$179,000
Income tax expense	28,300		21,200
Net income	$207,200		$157,800

Blige Inc.
Comparative Balance Sheet
December 31, 2016 and 2015
			Dec. 31, 2016		Dec. 31, 2015
Assets
Current assets
	Cash		$211,200		$210,220
	Temporary investments		319,650		348,360
	Accounts receivable (net)		219,000		204,400
	Inventories		160,600		116,800
	Prepaid expenses		39,950		42,040
		Total current assets	$950,400		$921,820
Long-term investments			572,850		273,523
Property, plant, and equipment (net)			1,170,000		1,053,000
Total assets			$2,693,250		$2,248,343
Liabilities
Current liabilities			$297,000		$444,593
Long-term liabilities
	Mortgage note payable, 8%, due 2021		$400,000		$0
	Bonds payable, 8%, due 2017		500,000		500,000
		Total long-term liabilities	$900,000		$500,000
Total liabilities			$1,197,000		$944,593
Stockholders' Equity
Preferred $0.7 stock, $20 par			$180,000		$180,000
Common stock, $10 par			210,000		210,000
Retained earnings			1,106,250		913,750
	Total stockholders' equity		$1,496,250		$1,303,750
Total liabilities and stockholders' equity			$2,693,250		$2,248,343

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