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 $55 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			$4,239,725		$3,593,575
Add net income for year			950,400		736,000
Total			$5,190,125		$4,329,575
Deduct dividends
	On preferred stock		$12,600		$12,600
	On common stock		77,250		77,250
		Total	$89,850		$89,850
Retained earnings, December 31			$5,100,275		$4,239,725

Blige Inc.
Comparative Income Statement
For the Years Ended December 31, 2016 and 2015
	2016		2015
Sales	$6,335,070		$5,828,300
Sales returns and allowances	31,520		20,490
Sales	$6,303,550		$5,807,810
Cost of goods sold	2,365,200		2,175,980
Gross profit	$3,938,350		$3,631,830
Selling expenses	$1,330,530		$1,639,000
Administrative expenses	1,133,420		962,590
Total operating expenses	2,463,950		2,601,590
Income from operations	$1,474,400		$1,030,240
Other income	77,600		65,760
	$1,552,000		$1,096,000
Other expense (interest)	472,000		260,000
Income before income tax	$1,080,000		$836,000
Income tax expense	129,600		100,000
Net income	$950,400		$736,000

Blige Inc.
Comparative Balance Sheet
December 31, 2016 and 2015
			Dec. 31, 2016		Dec. 31, 2015
Assets
Current assets
	Cash		$1,200,050		$833,850
	Temporary investments		1,816,290		1,381,810
	Accounts receivable (net)		1,182,600		1,109,600
	Inventories		890,600		686,200
	Prepaid expenses		227,039		166,770
		Total current assets	$5,316,579		$4,178,230
Long-term investments			2,956,999		171,578
Property, plant, and equipment (net)			6,490,000		5,841,000
Total assets			$14,763,578		$10,190,808
Liabilities
Current liabilities			$1,833,303		$771,083
Long-term liabilities
	Mortgage note payable, 8%, due 2021		$2,650,000		$0
	Bonds payable, 8%, due 2017		3,250,000		3,250,000
		Total long-term liabilities	$5,900,000		$3,250,000
Total liabilities			$7,733,303		$4,021,083
Stockholders' Equity
Preferred $0.7 stock, $50 par			$900,000		$900,000
Common stock, $10 par			1,030,000		1,030,000
Retained earnings			5,100,275		4,239,725
	Total stockholders' equity		$7,030,275		$6,169,725
Total liabilities and stockholders' equity			$14,763,578		$10,190,808

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

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

18. Dividends per share of common stock

19. Dividend yield