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 $60 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			$3,632,050		$3,080,450
Add net income for year			795,200		630,900
Total			$4,427,250		$3,711,350
Deduct dividends
	On preferred stock		$10,500		$10,500
	On common stock		68,800		68,800
		Total	$79,300		$79,300
Retained earnings, December 31			$4,347,950		$3,632,050

Blige Inc.
Comparative Income Statement
For the Years Ended December 31, 2016 and 2015
	2016		2015
Sales	$4,536,160		$4,173,300
Sales returns and allowances	22,570		14,670
Sales	$4,513,590		$4,158,630
Cost of goods sold	1,708,200		1,571,540
Gross profit	$2,805,390		$2,587,090
Selling expenses	$903,620		$1,111,450
Administrative expenses	769,750		652,760
Total operating expenses	1,673,370		1,764,210
Income from operations	$1,132,020		$822,880
Other income	59,580		52,520
	$1,191,600		$875,400
Other expense (interest)	288,000		158,400
Income before income tax	$903,600		$717,000
Income tax expense	108,400		86,100
Net income	$795,200		$630,900

Blige Inc.
Comparative Balance Sheet
December 31, 2016 and 2015
			Dec. 31, 2016		Dec. 31, 2015
Assets
Current assets
	Cash		$738,250		$829,890
	Temporary investments		1,117,360		1,375,230
	Accounts receivable (net)		861,400		810,300
	Inventories		642,400		496,400
	Prepaid expenses		139,670		165,980
		Total current assets	$3,499,080		$3,677,800
Long-term investments			2,545,230		1,080,435
Property, plant, and equipment (net)			4,680,000		4,212,000
Total assets			$10,724,310		$8,970,235
Liabilities
Current liabilities			$1,166,360		$1,748,185
Long-term liabilities
	Mortgage note payable, 8%, due 2021		$1,620,000		$0
	Bonds payable, 8%, due 2017		1,980,000		1,980,000
		Total long-term liabilities	$3,600,000		$1,980,000
Total liabilities			$4,766,360		$3,728,185
Stockholders' Equity
Preferred $0.7 stock, $50 par			$750,000		$750,000
Common stock, $10 par			860,000		860,000
Retained earnings			4,347,950		3,632,050
	Total stockholders' equity		$5,957,950		$5,242,050
Total liabilities and stockholders' equity			$10,724,310		$8,970,235

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		%