Nineteen Measures of Solvency and Profitability

The comparative financial statements of Stargel Inc. are as follows. The market price of Stargel Inc. common stock was $119.70 on December 31, 2016.

Stargel Inc.
Comparative Retained Earnings Statement
For the Years Ended December 31, 2016 and 2015
			2016		2015
Retained earnings, January 1			$5,375,000		$4,545,000
Add net income for year			900,000		925,000
Total			$6,275,000		$5,470,000
Deduct dividends:
	On preferred stock		$45,000		$45,000
	On common stock		50,000		50,000
		Total	$95,000		$95,000
Retained earnings, December 31			$6,180,000		$5,375,000

Stargel Inc.
Comparative Income Statement
For the Years Ended December 31, 2016 and 2015
	2016		2015
Sales (all on account)	$10,050,000		$9,450,000
Sales returns and allowances	50,000		50,000
Sales	$10,000,000		$9,400,000
Cost of goods sold	5,350,000		4,950,000
Gross profit	$4,650,000		$4,450,000
Selling expenses	$2,000,000		$1,880,000
Administrative expenses	1,500,000		1,410,000
Total operating expenses	$3,500,000		$3,290,000
Income from operations	$1,150,000		$1,160,000
Other income	150,000		140,000
	$1,300,000		$1,300,000
Other expense (interest)	170,000		150,000
Income before income tax	$1,130,000		$1,150,000
Income tax expense	230,000		225,000
Net income	$900,000		$925,000

Stargel Inc.
Comparative Balance Sheet
December 31, 2016 and 2015
			Dec. 31, 2016		Dec. 31, 2015
Assets
Current assets:
	Cash		$500,000		$400,000
	Marketable securities		1,010,000		1,000,000
	Accounts receivable (net)		740,000		510,000
	Inventories		1,190,000		950,000
	Prepaid expenses		250,000		229,000
		Total current assets	$3,690,000		$3,089,000
Long-term investments			2,350,000		2,300,000
Property, plant, and equipment (net)			3,740,000		3,366,000
Total assets			$9,780,000		$8,755,000
Liabilities
Current liabilities			$900,000		$880,000
Long-term liabilities:
	Mortgage note payable, 8.8%, due 2021		$200,000		$0
	Bonds payable, 9%, due 2017		1,500,000		1,500,000
		Total long-term liabilities	$1,700,000		$1,500,000
Total liabilities			$2,600,000		$2,380,000
Stockholders' Equity
Preferred $0.90 stock, $10 par			$500,000		$500,000
Common stock, $5 par			500,000		500,000
Retained earnings			6,180,000		5,375,000
	Total stockholders' equity		$7,180,000		$6,375,000
Total liabilities and stockholders' equity			$9,780,000		$8,755,000

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		%