Use the following balance sheet form to enter amounts you identify from the computations on the Liquidity and Solvency Measures part. You will identify other 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.

Comparative Income Statement

Use the following comparative income statement form to enter amounts you identify from the computations on the Liquidity and Solvency Measures part and on the Profitability Measures part. Compute any missing amounts and complete the horizontal analysis columns. Enter percentages as decimal amounts, rounded to one decimal place. When rounding, look only at the figure to the right of one decimal place. If

amounts.) Liquidity and Solvency Measures Computations Working capital $3,091,000 - $860,000 $3,091,000 = $860,000 Current ratio Quick ratio $1,866,000 + $860,000 Accounts receivable turnover Number of days' sales in receivables Inventory turnover $8,250,000 = [($714,000 + $740,000) = 2] [($714,000 + $740,000) = 2] = ($8,250,000 = 365) $4,100,000 = [($1,072,000+ $1,100,000) = 2] [($1,072,000 + $1,100,000) = 2] = ($4,100,000 = 365) $2,690,000 = $1,690,000 Number of days' sales in inventory Ratio of fixed assets to long-term liabilities Ratio of liabilities to stockholders' equity $2,550,000 = $4,055,000 Times interest earned ($970,500 + $127,000) = $127,000 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 u11 Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Profitability Measures Computations Asset turnover $8,250,000 = [($5,781,000 + $5,591,000) = 2] Return on total assets Return on stockholders' equity Return on common stockholders' equity ($786,300 + $127,000) = [($6,605,000 + $6,415,000) = 2] $786,300 = [($4,055,000 + $3,852,250) = 2] ($786,300 - $65,000) = [($3,567,500 + $3,424,800) = 2] V ($786,300 - $65,000) = 250,000 shares $35 - $3.05 Earnings per share on common stock Price-earnings ratio Dividends per share $175,000 - 250,000 shares Dividend yield $0.70 = $35 Comparative Income Statement For the Years Ended December 31, 2016 and 2045 Increase/(Decrease) 2016 2015 Amount Percentage Sales $7.257,000 96 Cost of goods sold (3,444,000) 96 Gross profit $3,813,000 Selling expenses $(1.451,000) 90 Administrative expenses (1.237.500) (1,101,500) 90 Total operating expenses $(2.552,500) Operating income $1,260,500 96 Other expense interest) (120,600) 96 Income before income tax expense $1,139,900 Income tax expense (178,200) 96 Net income $961,700 96