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.

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 $ % Bettancort Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 2016 and 2015 2016 Retained earnings, January 1 2,655,000 Add net income for year 300,000 Total 2,955,000 Deduct dividends: On preferred stock 15,000 On common stock 10,000 Total 25,000 Retained earnings, December 31 2,930,000 2015 2,400,000 280,000 2,680,000 ### ### ### 2,655,000 Bettancort Inc. Comparative Income Statement For the Years Ended December 31, 2016 and 2015 2016 Sales (all on account) 1,212,000 Sales returns and allowances 12,000 Sales 1,200,000 Cost of goods sold 500,000 Gross profit 700,000 Selling expenses 240,000 Administrative expenses 180,000 Total operating expenses 420,000 Income from operations 280,000 Other income 166,000 446,000 Other expense (interest) 66,000 Income before income tax 380,000 Income tax expense 80,000 Net income 300,000 2015 1,010,000 10,000 1,000,000 475,000 525,000 200,000 150,000 350,000 175,000 225,000 400,000 60,000 340,000 60,000 280,000 Bettancort Inc. Comparative Balance Sheet December 31, 2016 and 2015 Dec. 31, 2016 Dec. 31, 2015 Assets Current assets: Cash Marketable securities Accounts receivable (net) Inventories Prepaid expenses Total current assets Long-term investments Property, plant, and equipment (net) 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 Answers 1. Working capital 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover 5. Number of days' sales in receivables 6. Inventory turnover 7. Number of days' sales in inventory 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 450,000 300,000 130,000 67,000 153,000 1,100,000 2,350,000 1,320,000 4,770,000 400,000 260,000 110,000 58,000 139,000 967,000 2,200,000 1,188,000 4,355,000 440,000 400,000 100,000 1,000,000 1,100,000 1,540,000 ### 1,000,000 1,400,000 200,000 100,000 2,930,000 3,230,000 4,770,000 ### ### 2,655,000 2,955,000 4,355,000 $ days days % % % $ 660,000 2.5 2.3 10.0 36.5 8.0 45.6 1.2 0.5 6.8 20.0 0.3 8.0 9.7 9.9 28.5 2.5 Formulas Current assets-current liabilities Current assets/current liabilities (Current assets - Inventories)/Current Liabilities Net Sales/Average Receivables 365/Accounts Receivable Turnover Cost of goods sold/Average Inventory 365/Inventory turnover Fixed assets net/Long-term liabilities Total liabilities/Shareholders' equity Income from operations/Interest Expense Net Income/Preferred Dividend Sales/Average Total Assets (Net Income+Interest Expense)/Average Total Assets Net Income/Averge total stockholders' equity (Net Income-Preferred Dividend)/Averge total common stockholders' equity (Net Income-Preferred Dividend)/Common Shares outstanding Market price per share/Earnings per share Correction None. With 1 was not t I did not ta None. The 18. Dividends per share of common stock 19. Dividend yield $ % 1.0 1.4 Dividends/Common Shares outstanding Dividends per share of common stock/Market price per share made hout rounding off its coming as 2.3477 ~2.35. Please use 2.4 as an answer and check. there in the formula for rounding off. I inserted it. ake other income before. Took it now. Fundamentally, EBIT should only be taked for the calculation. formula seems to be correct. Could be a rounding off issue. Try 0.2 or 0.4 and see