Nineteen Measures of Liquidity, Solvency, and Profitability The comparative financial statements of Blige Inc. are as follows. The market price of Blige Inc. common stock was $66 on December 31, 20Y8. Blige Inc. Comparative Income Statement For the Years Ended December 31, 20Y8 and 20Y7 20Y8 20Y7 Sales $1,901,985 $1,749,800 Sales returns and allowances 9,460 6,150 Net sales $1,892,525 $1,743,650 Cost of goods sold 678,900 624,590 Gross profit $1,213,625 $1,119,060 Selling expenses $421,220 $518,230 Administrative expenses 358,825 304,350 Total operating expenses 780,045 822,580 Income from operations $433,580 $296,480 Other income 22,820 18,920 $456,400 $315,400 Other expense (interest) 120,000 66,400 Income before income tax $336,400 $249,000 Income tax expense 40,400 29,600 Net income $296,000 $219,400 Blige Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y8 and 20Y7 20Y8 20Y7 Retained earnings, January 1 $1,264,900 $1,071,300 Add net income for year 296,000 219,400 Total $1,560,900 $1,290,700 Deduct dividends: On preferred stock $9,800 $9,800 On common stock 16,000 16,000 Total $25,800 $25,800 Retained earnings, December 31 $1,535,100 $1,264,900 Blige Inc. Comparative Balance Sheet December 31, 20Y8 and 20Y7 Dec. 31, 20Y8 Dec. 31, 20Y7 Assets Current assets: Cash $335,280 $303,250 Temporary investments 507,450 502,520 Accounts receivable (net) 321,200 299,300 Inventories 248,200 189,800 Prepaid expenses 63,435 60,650 Total current assets $1,475,565 $1,355,520 Long-term investments 931,125 465,622 Property, plant, and equipment (net) 1,650,000 1,485,000 Total assets $4,056,690 $3,306,142 Liabilities Current liabilities $421,590 $611,242 Long-term liabilities: Mortgage note payable, 8%, due in 15 years $670,000 $0 Bonds payable, 8%, due in 20 years 830,000 830,000 Total long-term liabilities $1,500,000 $830,000 Total liabilities $1,921,590 $1,441,242 Stockholders' Equity Preferred $0.70 stock, $20 par $280,000 $280,000 Common stock, $10 par 320,000 320,000 Retained earnings 1,535,100 1,264,900 Total stockholders' equity $2,135,100 $1,864,900 Total liabilities and stockholders' equity $4,056,690 $3,306,142 Instructions: Determine the following measures for 20Y8. Round ratio values to one decimal place and dollar amounts to the nearest cent. For number of days' sales in receivables and number of days' sales in inventory, round intermediate calculations to the nearest whole dollar and final amounts to one decimal place. Assume there are 365 days in the year. 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 earned 11. Number of times preferred dividends earned 12. Ratio of net 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 %