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Question: nineteen measures of solvency and profitability the comparative financial statements...

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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 $64 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 $4,522,850 $3,836,750
Add net income for year 994,000 785,800
Total $5,516,850 $4,622,550
Deduct dividends
On preferred stock $13,300 $13,300
On common stock 86,400 86,400
Total $99,700 $99,700
Retained earnings, December 31 $5,417,150 $4,522,850


Blige Inc.
Comparative Income Statement
For the Years Ended December 31, 2016 and 2015
    2016     2015
Sales $6,332,870 $5,826,200
Sales returns and allowances 31,510 20,480
Sales $6,301,360 $5,805,720
Cost of goods sold 2,392,210 2,200,830
Gross profit $3,909,150 $3,604,890
Selling expenses $1,277,060 $1,580,700
Administrative expenses 1,087,870 928,340
Total operating expenses 2,364,930 2,509,040
Income from operations $1,544,220 $1,095,850
Other income 81,280 69,950
$1,625,500 $1,165,800
Other expense (interest) 496,000 272,800
Income before income tax $1,129,500 $893,000
Income tax expense 135,500 107,200
Net income $994,000 $785,800


Blige Inc.
Comparative Balance Sheet
December 31, 2016 and 2015
    Dec. 31, 2016     Dec. 31, 2015
Assets
Current assets
Cash $1,329,670 $878,390
Temporary investments 2,012,480 1,455,620
Accounts receivable (net) 1,248,300 1,175,300
Inventories 934,400 715,400
Prepaid expenses 251,559 175,680
Total current assets $5,776,409 $4,400,390
Long-term investments 3,042,606 194,276
Property, plant, and equipment (net) 6,820,000 6,138,000
Total assets $15,639,015 $10,732,666
Liabilities
Current liabilities $1,991,865 $769,816
Long-term liabilities
Mortgage note payable, 8%, due 2021 $2,790,000 $0
Bonds payable, 8%, due 2017 3,410,000 3,410,000
Total long-term liabilities $6,200,000 $3,410,000
Total liabilities $8,191,865 $4,179,816
Stockholders' Equity
Preferred $0.7 stock, $50 par $950,000 $950,000
Common stock, $10 par 1,080,000 1,080,000
Retained earnings 5,417,150 4,522,850
Total stockholders' equity $7,447,150 $6,552,850
Total liabilities and stockholders' equity $15,639,015 $10,732,666

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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