ortif Ventures, Inc.'s comparative financial statements for the years ending December 31, 2017 and 2016, are as follows. The market price of the company's common stock was $30 on December 31, 2016, and $25 on December 31, 2017 Comparative Income Statement 2017 2016 $ $ $ $ Sales Sales Returns and Allowances Net Sales Cost of Goods Sold Gross Profit Selling Expenses Aministrative Expenses Total Operating Expenses Income from Operations Other Income 5,205,000 205.000 5,000,000 3.400.000 1.600,000 650,000 325,000 975.000 625.000 25,000 650,000 105.000 545,000 300,000 245,000 3,337,600 137,600 3,200,000 2.080,000 1,120,000 464,000 224,000 688.000 432,000 19,200 451,200 64,000 387,200 176,000 211,200 Other Expense interest) Income Before Income Tax Income Tax Expense Net Income Comparative Retained Earnings Statement 2017 2016 $ $ 723,000 245,000 968,000 581,800 211,200 793,000 $ $ Retained Earnings, January 1 Add net income for the year Total Deduct dividends: On preferred stock On common stock Total Retained Earnings, December 31 $ 40,000 45,000 85,000 883,000 40,000 30,000 70,000 723,000 $ $ $ $ Comparative Balance Sheet 2017 2016 Assets Current Assets: Cash Temporary Investments Accounts Receivable (net) Inventories Prepaid Expenses Total current assets Long-term investments Property, plant & equipment (net) Total Assets 175,000 150,000 425,000 720,000 30,000 1,500,000 250,000 2,093,000 3,843,000 125,000 50,000 325,000 480,000 20,000 1,000,000 225,000 1,948,000 3,173,000 $ $ $ $ 750,000 $ 650,000 Liabilities Current liabilities Long-term liabilities: Note payable, 10%, due 2018 Bonds Payable, 8%, due 2019 Total long-term liabilities Total liabilities $ $ $ 410,000 800,000 1,210,000 1,960,000 $ $ 800.000 800,000 1,450,000 $ $ Stockholder's Equity Preferred 8% stock, $100 par Common stock, $10 par Retained Earnings Total Stockholder's Equity Total liabilities and stockholder's equity 500,000 500,000 883,000 1,883,000 3,843,000 500,000 500,000 723,000 1,723,000 3,173,000 $ $ $ $ Instructions: Determine the following measures for 2017: Cells are formatted to display in the same scale presented in the chapter (S, M, or = Working capital = Current ratio = Quick ratio = Accounts receivable turnover = Number of days' sales in receivables = = Inventory turnover Number of days' sales in inventory = Ratio of fixed assets to long-term liabilities = Ratio of liabilities to stockholder's equity = Number of times interest charges are earned Number of times preferred dividends earned = Ratio of net sales to assets = Rate earned on total assets = Rate earned on stockholders' equity = Rate earned on common stockholders' equity = Earnings per share on common stock = Price-earnings ratio = = Dividends per share Dividend yield
