Complete requirements for problem PR 15-4A Nineteen measures of solvency and profitability for Bettancort Inc. on page 742 of your text. The question only specifically asks for 2016 ratios but complete 2015 ratios also and draft aprofessional memoaddressed to Bettancort Inc.'s management to discuss your evaluation of its solvency and performance based on your ratio calculations

Nineteen Measures of Solvency and Profitability The comparative financial statements of Bettancort Inc. are as follows. The market price of Bettancort Inc. common stock was $71.25 on December 31, 2016. Bettancort Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 2016 and 2015 2016 2015 $2,655,000 $2,400,000 300,000 280,000 $2,955,000 $2,680,000 On preferred stock $15,000 $15,000 On common stock 10,000 10,000 $25,000 $25,000 $2,930,000 $2,655,000 Retained earnings, January 1 Add net income for year Total Deduct dividends: Total Retained earnings, December 31 Bettancort Inc. Comparative Income Statement For the Years Ended December 31, 2016 and 2015 2016 Sales (all on account) 2015 $1,212,000 $1,010,000 12,000 10,000 $1,200,000 $1,000,000 500,000 475,000 Gross profit $700,000 $525,000 Selling expenses $240,000 $200,000 Administrative expenses 180,000 150,000 Total operating expenses $420,000 $350,000 Income from operations $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 Sales returns and allowances Sales Cost of goods sold Other income Other expense (interest) Income before income tax Income tax expense Net income Bettancort Inc. Comparative Balance Sheet December 31, 2016 and 2015 Dec. 31, 2016 Dec. 31, 2015 Assets Current assets: Cash $450,000 $400,000 Marketable securities 300,000 260,000 Accounts receivable (net) 130,000 110,000 67,000 58,000 Inventories Prepaid expenses 153,000 139,000 $1,100,000 $967,000 Long-term investments 2,350,000 2,200,000 Property, plant, and equipment (net) 1,320,000 1,188,000 $4,770,000 $4,355,000 $440,000 $400,000 $100,000 $0 1,000,000 1,000,000 $1,100,000 $1,000,000 $1,540,000 $1,400,000 $200,000 $200,000 100,000 100,000 2,930,000 2,655,000 $3,230,000 $2,955,000 $4,770,000 $4,355,000 Total current assets Total assets Liabilities Current liabilities 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 and stockholders' equity 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 $ %