The comparative financial statements of Blige Inc. are as follows. The market price of Blige Inc. common stock was $65 on December 31, 2014.

Blige Inc.
Comparative Retained Earnings Statement
For the Years Ended December 31, 2014 and 2013
			2014		2013
Retained earnings, January 1			$3,336,500		$2,830,500
Add net income for year			800,800		579,800
Total			$4,137,300		$3,410,300
Deduct dividends
	On preferred stock		$9,800		$9,800
	On common stock		64,000		64,000
		Total	$73,800		$73,800
Retained earnings, December 31			$4,063,500		$3,336,500

Blige Inc.
Comparative Income Statement
For the Years Ended December 31, 2014 and 2013
	2014		2013
Sales	$4,375,490		$4,025,500
Sales returns and allowances	21,770		14,150
Net sales	$4,353,720		$4,011,350
Cost of goods sold	1,705,280		1,568,860
Gross profit	$2,648,440		$2,442,490
Selling expenses	$823,790		$1,059,920
Administrative expenses	701,750		622,490
Total operating expenses	1,525,540		1,682,410
Income from operations	$1,122,900		$760,080
Other income	59,100		48,520
	$1,182,000		$808,600
Other expense (interest)	272,000		149,600
Income before income tax	$910,000		$659,000
Income tax expense	109,200		79,200
Net income	$800,800		$579,800

Blige Inc.
Comparative Balance Sheet
December 31, 2014 and 2013
			Dec. 31, 2014		Dec. 31, 2013
Assets
Current assets
	Cash		$725,560		$860,990
	Temporary investments		1,098,140		1,426,770
	Accounts receivable (net)		803,000		751,900
	Inventories		598,600		467,200
	Prepaid expenses		137,260		172,200
		Total current assets	$3,362,560		$3,679,060
Long-term investments			2,231,740		1,316,251
Property, plant, and equipment (net)			4,420,000		3,978,000
Total assets			$10,014,300		$8,973,311
Liabilities
Current liabilities			$1,050,800		$2,266,811
Long-term liabilities
	Mortgage note payable, 8%, due 2019		$1,530,000		$0
	Bonds payable, 8%, due 2015		1,870,000		1,870,000
		Total long-term liabilities	$3,400,000		$1,870,000
Total liabilities			$4,450,800		$4,136,811
Stockholders' Equity
Preferred $0.70 stock, $50 par			$700,000		$700,000
Common stock, $10 par			800,000		800,000
Retained earnings			4,063,500		3,336,500
	Total stockholders' equity		$5,563,500		$4,836,500
Total liabilities and stockholders' equity			$10,014,300		$8,973,311

Required:

Determine the following measures for 2014, 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.

1. Working capital	$	2311760
2. Current ratio		3.2
3. Quick ratio		2.50
4. Accounts receivable turnover		5.60
5. Number of days' sales in receivables		65.2 days
6. Inventory turnover		3.2
7. Number of days' sales in inventory		114.1 days
8. Ratio of fixed assets to long-term liabilities		1.3
9. Ratio of liabilities to stockholders' equity		.80
10. Number of times interest charges are earned
11. Number of times preferred dividends are earned		81.7
12. Ratio of net sales to assets
13. Rate earned on total assets		%
14. Rate earned on stockholders' equity		15.4 %
15. Rate earned on common stockholders' equity		17.6 %
16. Earnings per share on common stock	$
17. Price-earnings ratio		6.5
18. Dividends per share of common stock	$	.8
19. Dividend yield		1.2 %

Feedback

1. Subtract current liabilities from current assets.

2. Divide current assets by current liabilities.

3. Divide quick assets by current liabilities. Quick assets are cash, temporary investments, and receivables.

4. Divide net sales by average accounts receivable. Average Accounts receivable = (Beginning Net Accounts Receivable + Ending Net Accounts Receivable) 2.

5. Divide average accounts receivable by average daily sales. Average Accounts receivable = (Beginning Net Accounts Receivable + Ending Net Accounts Receivable) 2. Average daily sales are net sales divided by 365 days.

6. Divide cost of goods sold by average inventory. Average Inventory = (Beginning Inventories + Ending Inventories) 2.

7. Divide average inventory by average daily cost of goods sold. Average Inventory = (Beginning Inventories + Ending Inventories) 2. Average daily cost of goods sold are cost of goods sold divided by 365 days.

8. Divide property, plant and equipment (net) by long-term liabilities.

9. Divide total liabilities by total stockholders' equity.

10. Divide the sum of income before income tax plus interest expense by interest expense.

11. Divide net income by preferred dividends from the retained earnings statement.

12. Divide net sales by average total assets, excluding long-term investments. Average total assets = (Beginning total assets + Ending total assets) 2.

13. Divide the sum of net income plus interest expense by average total assets. Average total assets = (Beginning total assets + Ending total assets) 2.

14. Divide net income by average total stockholders' equity. Average total stockholders' equity = (Beginning total stockholders' equity + Ending total stockholders' equity) 2.

15. Divide net income minus preferred dividends from the retained earnings statement by average common stockholders' equity. Common stockholders' equity = Common stock + Retained earnings. Average common stockholders' equity = (Beginning common stockholders' equity + Ending common stockholders' equity) 2.

16. Divide net income minus preferred dividends from the retained earnings statement by common shares outstanding (common stock par value).

17. Divide common market share price by common earnings per share (use answer from requirement 16).

18. Divide common dividends (from Retained Earnings Statement) by common shares outstanding (common stock par value).

19. Divide common dividends per share (use answer from requirement 18) by market share price.