2. PE.17.04.ALGO 3. PE.17.05.ALGO 4. EX.17.17.ALGO 5. EX.17.20.ALGO Five Measures of Solvency or Profitability The balance sheet for Quigg Inc. at the end of the current fiscal year indicated the following: Bonds payable, 8% Preferred $10 stock, $100 par Common stock, $7 par Income before income tax expense was $149,600,and income taxes were $21,850 for the current year. Cash

Five Measures of Solvency or Profitabitity The balance sheet for Quigg Inc. at the end of the current. fiscal year indicated the following: Income before income tax expense was $149,600, and income taxes were $21,850 for the current year. Cash dividends paid on common stock during the current year totaled $26,499. The common stock was selling for $220 per share at the end of the year. Determine each of the following. Round answers to one decimal place, except for dollar amounts which should be rounded to the nearest whole cent. Use the rounded answers for subsequent requirements, if required. a. Divide the sum of income before income tax plus interest expense by interest expense. Interest equals the bond payable amount times the interest rate on the bonds. b. Divide net income (which is income before taxes less income taxes) minus preferred dividends by common shares outstanding (common stock par value). c. Divide common market share price (or selling price at the end of the year) by common earnings per share (from requirement c). d. Divide common dividends by common shares outstanding (common stock par value). e. Divide common dividends per share (from requirement e) by share price (or selling price at the end of the year)