Below you will find the financial statements for XYZ Company: 2016 2015

Retained Earnings Statement Beginning Retained Earnings Add: Net Income T otal

Less Dividends: On Preferred Stock On Common Stock

T otal Ending Retained Earnings

Income Statement Sales Cost of Goods Sold Gross Profit

Selling Expense Admin. Expense Total operating expense Income from operations Other income

Other Expense Income before income tax Income tax expense Net Income

Balance Sheet Current Assets:

Cash Marketable Securities Accounts receivable Inventories Prepaid Expenses

Total current assets Long-term investments

Property, Plant, and Equipment (net) Total Assets

Current Liabilities

$2,655,000 $2,400,000 300,000 280,000 2,955,000 2,680,000

15,000 15,000 10,000 10,000 25,000 25,000 2,930,000 2,655,000

2016 2015

1,200,000 1,000,000 500,000 475,000 700,000 525,000 240,000 200,000 180,000 150,000 420,000 350,000 280,000 175,000 166,000 225,000 446,000 400,000 66,000 60,000 380,000 340,000 80,000 60,000 300,000 280,000

2016 2015

450,000 400,000 300,000 260,000 130,000 110,000 67,000 58,000 153,000 139,000 1,100,000 967,000 2,350,000 2,200,00 1,320,000 1,188,000 4,770,000 4,355,000

440,000 400,000

Long-term liabilities: Mortgage Note Payable, 8%, due 2021 Bonds payable, 5%, due 2017

Total long-term liabilities Total Liabilities

Stockholders Equity: Preferred, $0.75 stock, $10 par Common stock, $10 par Retained Earnings

Total Stockholders equity Total Liabilities & stockholders equity

100,000 1,000,000 1,540,000 1,540,000

200,000 100,000 2,930,000 3,230,000 4,770,000

0.00 1,000,000 1,400,000 1,400,000

200,000 100,000 2,655,000 2,955,000 4,355,000

Instructions: Calculate the following ratios for 2016: (15 points)

Workingcapital

Currentratio

Quick ratio

Accountsreceivable

Number of days sales in receivables

Inventoryturnover

Number of days sales in inventory

Ratiooffixedassetstolong-termliabilities

Ratioofliabilitiestostockholdersequity

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 of common stock 17.Price-earnings ratio 18.Dividends per share of common stock 19.Dividend yield