Nineteen Measures of The ability of a firm to pay its debts as they come due.Solvency and The ability of a firm to earn income.Profitability The comparative financial statements of Blige Inc. are as follows. The market price of Blige Inc. common stock was $61 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 $913,750 $770,650 Add net income for year 207,200 157,800 Total $1,120,950 $928,450 Deduct dividends On preferred stock $6,300 $6,300 On common stock 8,400 8,400 Total $14,700 $14,700 Retained earnings, December 31 $1,106,250 $913,750 Blige Inc. Comparative Income Statement For the Years Ended December 31, 2016 and 2015 2016 2015 Sales $1,255,280 $1,154,900 Sales returns and allowances 6,250 4,060 Sales $1,249,030 $1,150,840 Cost of goods sold 388,360 357,290 Gross profit $860,670 $793,550 Selling expenses $307,020 $370,240 Administrative expenses 261,530 217,450 Total operating expenses 568,550 587,690 Income from operations $292,120 $205,860 Other income 15,380 13,140 $307,500 $219,000 Other expense (interest) 72,000 40,000 Income before income tax $235,500 $179,000 Income tax expense 28,300 21,200 Net income $207,200 $157,800 Blige Inc. Comparative Balance Sheet December 31, 2016 and 2015 Dec. 31, 2016 Dec. 31, 2015 Assets Current assets Cash $211,200 $223,000 Temporary investments 319,650 369,530 Accounts receivable (net) 219,000 204,400 Inventories 160,600 116,800 Prepaid expenses 39,950 44,600 Total current assets $950,400 $958,330 Long-term investments 662,850 407,051 Property, plant, and equipment (net) 1,080,000 972,000 Total assets $2,693,250 $2,337,381 Liabilities Current liabilities $297,000 $533,631 Long-term liabilities Mortgage note payable, 8%, due 2021 $400,000 $0 Bonds payable, 8%, due 2017 500,000 500,000 Total long-term liabilities $900,000 $500,000 Total liabilities $1,197,000 $1,033,631 Stockholders' Equity Preferred $0.7 stock, $20 par $180,000 $180,000 Common stock, $10 par 210,000 210,000 Retained earnings 1,106,250 913,750 Total stockholders' equity $1,496,250 $1,303,750 Total liabilities and stockholders' equity $2,693,250 $2,337,381 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. 5. The relationship between sales and accounts receivable, computed by dividing the average accounts receivable by the average daily sales.Number of days' sales in receivables days 6. The relationship between the volume of goods sold and inventory, computed by dividing the cost of goods sold by the average inventory.Inventory turnover 7. The relationship between the volume of sales and inventory, computed by dividing average inventory by the average daily cost of goods sold.Number of days' sales in inventory days 8. The ratio of fixed assets to long-term liabilities provides a measure of whether note-holders or bondholders will be paid.Ratio of fixed assets to long-term liabilities 9. The ratio of liabilities to stockholders' equity measures how much of the company is financed by debt and equity.Ratio of liabilities to stockholders' equity 10. A ratio that measures creditor margin of safety for interest payments, calculated as income before income tax + interest expense divided by interest expense.Number of times interest charges are earned 11. A ratio that measures the risk that preferred dividends will not be paid if earnings decrease, calculated by dividing net income by the amount of preferred dividends.Number of times preferred dividends are earned 12. Ratio that measures how effectively a company uses its assets, computed as sales divided by average total assets.Ratio of sales to assets 13. A measure of profitability of assets, without regard to the portion of assets financed by creditors or stockholders.Rate earned on total assets % 14. A measure of profitability computed by dividing net income by average stockholders' equity.Rate earned on stockholders' equity % 15. A measure of profitability computed by dividing net income, reduced by preferred dividend requirements, by average common stockholders' equity.Rate earned on common stockholders' equity % 16. The profitability ratio of net income available to common shareholders to the number of common shares outstanding.Earnings per share on common stock $ 17. The ratio of the market price per share of common stock, at a specific date, to the annual earnings per share.Price-earnings ratio 18. Measures the extent to which earnings are being distributed to common shareholders.Dividends per share of common stock $ 19. A ratio, computed by dividing the annual dividends paid per share of common stock by the market price per share at a specific date, that indicates the rate of return to stockholders in terms of cash dividend distributions.Dividend yield %