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 Add net income for year Total Deduct dividends $1,641,700 336,300 $1,978,000 $1,948,000 414,000 $2,362,000 $7,000 23,000 $30,000 $2,332,000 $7,000 23,000 $30,000 $1,948,000 On preferred stock On common stock Total Retained earnings, December 31 Blige Inc. Comparative Income Statement For the Years Ended December 31, 2016 and 2015 2016 2015 Sales Sales returns and allowances Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Income from operations Other income $2,488,540 12,380 $2,476,160 963,600 $1,512,560 $485,130 413,260 898,390 $614,170 32,330 $646,500 176,000 $470,500 56,500 $414,000 $2,289,500 8,050 $2,281,450 886,510 $1,394,940 $595,270 349,600 944,870 $450,070 28,730 $478,800 96,800 $382,000 45,700 $336,300 Other expense (interest) Income before income tax Income tax expense Net income