This is one problem and all the information needed to answer the questions at the end.

PR 17-4A (pgs. 828-829)

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 $60 on December 31, 2012.

Blige Inc.

Comparative Retained Earnings Statement

For the Year Ended December 31, 2012 and 2011

	2012	2011
Retained earnings, January 1	$1,810,000	$1,526,000
Add net income for year	410,750	322,000
Total	$2,220,750	$1,848,000
Deduct dividends:
On preferred stock	$16,000	$16,000
On common stock	22,000	22,000
Total	$38,000	$38,000
Retained Earnings, December 31	$2,182,750	$1,810,000

Blige Inc. Comparative Income Statement For the Years Ended December 31, 2012 and 2011

	2012	2011
Sales	$2,211,000	$2,037,200
Sales returns and allowances	11,000	7,200
Net sales	$2,200,000	$2,030,000
Cost of goods sold	825,000	811,200
Gross profit	$1,375,000	$1,218,800
Selling expenses	$445,500	$484,000
Administrative expenses	321,750	290,400
Total operating expenses	$767,250	$774,400
Income from operations	$607,750	$444,400
Other income	33,000	26,400
	$640,750	$470,800
Other expense (interest)	176,000	96,000
Income before income tax	$464,750	$374,800
Income tax expense	54,000	52,800
Net income	$410,750	$322,000

Blige Inc.

Comparative Balance Sheet

December 31, 2012 and 2011

	Dec. 31, 2012	Dec. 31, 2011
Assets
Current Assets:
Cash	$528,000	$410,000
Temporary investments	800,000	725,000
Accounts receivable (net)	425,000	400,000
Inventories	310,000	240,000
Prepaid expenses	100,000	75,000
Total current assets	$2,163,000	$1,850,000
Long-term investments	633,000	560,000
Property, plant, and equipment (net)	3,146,750	2,150,000
Total assets	$5,942,750	$4,560,000
Liabilities
Current liabilities	$720,000	$710,000
Long-term liabilities:
Mortgage note payable, 8%, due 2017	$1,000,000	$0
Bonds payable, 8%, due 2021	1,200,000	1,200,000
Total long-term liabilities	$2,200,000	$1,200,000
Total liabilities	$2,920,000	$1,910,000
Stockholders' Equity
Preferred $0.80 stock, $20 par	$400,000	$400,000
Common stock, $10 par	440,000	440,000
Retained earnings	2,182,750	1,810,000
Total stockholders' equity	$3,022,750	$2,650,000
Total liabilities and stockholders' equity	$5,942,750	$4,560,000

Instructions

Determine the following measures for 2012, rounding to one decimal place:

1. Workingcapital
2. Currentratio
3. Quickratio
4. Accountsreceivableturnover
5. Numberofdays'salesinreceivables
6. Inventoryturnover
7. Numberofdays'salesininventory
8. Ratiooffixedassetstolong-termliabilities
9. Ratioofliabilitiestostockholders'equity
10. Numberoftimesinterestchargesearned
11. Numberoftimespreferreddividendsearned
12. Ratioofnetsalestoassets
13. Rateearnedontotalassets
14. Rateearnedonstockholders'equity
15. Rateearnedoncommonstockholders'equity
16. Earningspershareoncommonstock
17. Price-earningsratio
18. Dividendspershareofcommonstock
19. Dividend yield