please show each step
Mastery Problem: Financial Statement Analysis Liquidity and Solvency Measures Your friend, another accountant, has bet you that with your knowledge of accounting and just the computations for common analytical measures, you can figure out many aspects of a company's financial statements. You take the beti Match each computation to one of the liquidity and solvency measures in the table. (Hint: Begin by looking for simple computations and identifying the amounts in those computations. Look for other measures that we those amounts.) Liquidity and Solvency Measures Computations Working capital $3,093,000 - $900,000 Current ratio $3,093,000+ $900,000 Quick ratio $1,866,000 $900,000 Accounts receivable turnover $8,250,000[(5714,000 $740,000) 21 Number of days' sales in receivables [(5714,000+ $740,000) + 2] +(68,250,000 365) Inventory turnover $4,100,000+ (81,072,000+ $1,100,000)+2) Number of days' sales in inventory (51,072,000+ $1,100,000) + 2) + (84,100,000 -365) Ratio of fixed assets to long-term labs $2,690,000 - $1,690,000 Ratio of laboties to stockholders' equity $2,590,000+ $4,017,000 Times interest earned (6970,500 $127,000) + 5127,000 Balance Sheet Use the following balance sheet form to enter amounts you identify from the computations on the liquidity and Solvency Measures part. You will identify the amounts for the balance sheet on the Profitability Measures part. If you have a choice of two amounts, assume the first amount in the ratio is for the end of the year. Compute any missing amounts Balance Sheet December 31, 2016 Assets Current assets: Cash $823,000 Marketable securities Accounts receivable (net) Inventory Prepaid expenses Total current assets Long-term investments Property, plant, and equipment (net) Total assets Liabilities Current liabilities Long-term liabilities Total liabilities Stockholders' Equity Preferred stock, $10 par Common stock, 55 par Retained earnings Total stockholders' equity Assets Current assets: Cash $823,000 Marketable securities Accounts receivable (net) Inventory Prepaid expenses Total current assets Long-term investments Property, plant, and equipment (net) > Total assets Liabilities Current liabilities Long-term liabilities Total liabilities Stockholders' Equity Preferred stock, $10 par Common stock, $5 par Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ Profitably Measures Match each computation to one of the profitability measures in the table Profitability Measures Computatione As turnover 58,250,000 (65,783,000 $5.593,000). 2) Return on total (5766,300 $127.000)+($6,607,000+ $6,417,000) 27 Return on stockholders' uity 5706,300 + (54,017,000+ $3,616,150)+2) Return on common stockholders' equity (5766,300 - 565.000). (63,529,500 $3,360,32021 Earnings per share on common stock (5786,300 - $65.000) 250,000 shares Price-earnings ratio $35 + $1.05 Dividends per share $175.000 250.000 shares Dividend yield 50.70+ $35 Comparative Income Statement Use the following comparative income statement form to enter amounts you identity from the computations on the Liquidity and Solvency Measures part and on the Profitability Measures part. Compute any missing amounts and complete the horrontal analysis columns. Enter percentages as decimal amounts, rounded to one decimal place when roundin, look only at the figure to the right of one decimal place. If
