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, 2012.

Blige Inc.
Comparative Retained Earnings Statement
For the Years Ended December 31, 2012 and 2011
	2012		2011
Retained earnings, January 1	$4,515,250		$3,794,550
Add net income for year	966,000		777,200
Total	$5,481,250		$4,571,750
Deduct dividends:
On preferred stock	$13,300		$13,300
On common stock	43,200		43,200
Total	$56,500		$56,500
Retained earnings, December 31	$5,424,750		$4,515,250

Blige Inc.
Comparative Income Statement
For the Years Ended December 31, 2012 and 2011
	2012		2011
Sales	$6,735,275		$6,196,500
Sales returns and allowances	33,510		21,780
Net sales	$6,701,765		$6,174,720
Cost of goods sold	2,406,080		2,213,590
Gross profit	$4,295,685		$3,961,130
Selling expenses	$1,547,250		$1,839,470
Administrative expenses	1,318,025		1,080,330
Total operating expenses	2,865,275		2,919,800
Income from operations	$1,430,410		$1,041,330
Other income	75,290		66,470
	$1,505,700		$1,107,800
Other expense (interest)	408,000		224,800
Income before income tax	$1,097,700		$883,000
Income tax expense	131,700		105,800
Net income	$966,000		$777,200

Blige Inc.
Comparative Balance Sheet
December 31, 2012 and 2011
	Dec. 31, 2012		Dec. 31, 2011
Assets
Current assets:
Cash	$1,292,500		$917,080
Temporary investments	1,956,210		1,519,720
Accounts receivable (net)	1,131,500		1,065,800
Inventories	846,800		657,000
Prepaid expenses	244,525		183,420
Total current assets	$5,471,535		$4,343,020
Long-term investments	1,552,490		-176,288
Property, plant, and equipment (net)	7,140,000		6,426,000
Total assets	$14,164,025		$10,592,732
Liabilities
Current liabilities	$1,609,275		$1,237,482
Long-term liabilities:
Mortgage note payable, 8%, due 2017	$2,290,000		$0
Bonds payable, 8%, due 2021	2,810,000		2,810,000
Total long-term liabilities	$5,100,000		$2,810,000
Total liabilities	$6,709,275		$4,047,482
Stockholders' Equity
Preferred $0.70 stock, $50 par	$950,000		$950,000
Common stock, $10 par	1,080,000		1,080,000
Retained earnings	5,424,750		4,515,250
Total stockholders' equity	$7,454,750		$6,545,250
Total liabilities and stockholders' equity	$14,164,025		$10,592,732

Instructions:

Determine the following measures for 2012, rounding to one decimal place, except for dollar amounts, which should be rounded to the nearest cent. 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 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:		%