Nineteen Measures of Solvency and Profitability

The comparative financial statements of Blige Inc. are as follows. The market price of Blige Inc. common stock was $64 on December 31, 2016.

Blige Inc.
Comparative Retained Earnings Statement
For the Years Ended December 31, 2016 and 2015
			2016		2015
Retained earnings, January 1			$3,105,200		$2,637,100
Add net income for year			681,600		540,100
Total			$3,786,800		$3,177,200
Deduct dividends
	On preferred stock		$9,100		$9,100
	On common stock		62,900		62,900
		Total	$72,000		$72,000
Retained earnings, December 31			$3,714,800		$3,105,200

Blige Inc.
Comparative Income Statement
For the Years Ended December 31, 2016 and 2015
	2016		2015
Sales	$3,810,580		$3,505,700
Sales returns and allowances	18,960		12,320
Sales	$3,791,620		$3,493,380
Cost of goods sold	1,418,390		1,304,920
Gross profit	$2,373,230		$2,188,460
Selling expenses	$757,000		$934,110
Administrative expenses	644,860		548,600
Total operating expenses	1,401,860		1,482,710
Income from operations	$971,370		$705,750
Other income	51,130		45,050
	$1,022,500		$750,800
Other expense (interest)	248,000		136,800
Income before income tax	$774,500		$614,000
Income tax expense	92,900		73,900
Net income	$681,600		$540,100

Blige Inc.
Comparative Balance Sheet
December 31, 2016 and 2015
			Dec. 31, 2016		Dec. 31, 2015
Assets
Current assets
	Cash		$686,790		$672,620
	Temporary investments		1,039,470		1,114,620
	Accounts receivable (net)		737,300		693,500
	Inventories		554,800		423,400
	Prepaid expenses		129,928		134,520
		Total current assets	$3,148,288		$3,038,660
Long-term investments			2,010,352		745,700
Property, plant, and equipment (net)			4,030,000		3,627,000
Total assets			$9,188,640		$7,411,360
Liabilities
Current liabilities			$983,840		$1,206,160
Long-term liabilities
	Mortgage note payable, 8%, due 2021		$1,390,000		$0
	Bonds payable, 8%, due 2017		1,710,000		1,710,000
		Total long-term liabilities	$3,100,000		$1,710,000
Total liabilities			$4,083,840		$2,916,160
Stockholders' Equity
Preferred $0.7 stock, $50 par			$650,000		$650,000
Common stock, $10 par			740,000		740,000
Retained earnings			3,714,800		3,105,200
	Total stockholders' equity		$5,104,800		$4,495,200
Total liabilities and stockholders' equity			$9,188,640		$7,411,360

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.

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

$ 2164448

2. Current ratio

3.2

3. Quick ratio

2.50

4. Accounts receivable turnover

5.3

5. Number of days' sales in receivables

6. Inventory turnover
7. Number of days' sales in inventory		days
8. Ratio of fixed assets to long-term liabilities

days