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 liabilities to stockholders' equity
number of times interest charges are earned
ratio of 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 of common stock
dividend yield
1 /1 PR 17-48 Nineteen measures of solvency and profitability The comparative financial statements of Stargel Inc. are as follows. The market price of OBJ,2, 3 Stargel Inc. common stock was $119.70 on December 31, 2014. Stargel Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 2014 and 2013 Retained earnings, January 1. . 2014 2013 Add net Income for year . .. $5,375,000 $4,545,000 Total . ... 900,000 925,000 Deduct dividends: $6,275,000 $5,470,000 On preferred stock . . 45,000 On common stock. .. 45,000 50,000 Total. .... 50,000 $ 95,000 95,000 Retained earnings, December 31 ... $6,180,000 $5,375,000 Stargel Inc. Comparative Income Statement For the Years Ended December 31, 2014 and 2013 2014 2013 Sales (all on account) . . ... . ..... $10,050,000 $9,450,000 Sales returns and allowances.. 50,000 50,000 Net sales. . .. $10,000,000 $9,400,000 Cost of goods sold. .... 5,350,000 4,950,000 Gross profit . ..... $ 4,650,000 $4,450,000 Selling expenses ... $ 2,000,000 $1,880,000 Administrative expenses .... 1,500,000 1,410,000 Total operating expenses . . ..... $ 3,500,000 $3,290,000 Income from operations . ... $ 1,150,000 $1,160,000 Other income . .. .. 150,000 140,000 $ 1,300,000 $1,300,000 170,000 150,000 Other expense (interest) . . . ..... $ 1,130,000 $1,150,000 Income before income tax . .. 230,000 225,000 Income tax expense .. . 900,000 $ 925,000 Net income . . .... . . ..... Starcel Inc. W hp1 /1 PR 17-48 Nineteen measures of solvency and profitability The comparative financial statements of Stargel Inc. are as follows. The market price of OBJ,2, 3 Stargel Inc. common stock was $119.70 on December 31, 2014. Stargel Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 2014 and 2013 Retained earnings, January 1. . 2014 2013 Add net Income for year . .. $5,375,000 $4,545,000 Total . ... 900,000 925,000 Deduct dividends: $6,275,000 $5,470,000 On preferred stock . . 45,000 On common stock. .. 45,000 50,000 Total. .... 50,000 $ 95,000 95,000 Retained earnings, December 31 ... $6,180,000 $5,375,000 Stargel Inc. Comparative Income Statement For the Years Ended December 31, 2014 and 2013 2014 2013 Sales (all on account) . . ... . ..... $10,050,000 $9,450,000 Sales returns and allowances.. 50,000 50,000 Net sales. . .. $10,000,000 $9,400,000 Cost of goods sold. .... 5,350,000 4,950,000 Gross profit . ..... $ 4,650,000 $4,450,000 Selling expenses ... $ 2,000,000 $1,880,000 Administrative expenses .... 1,500,000 1,410,000 Total operating expenses . . ..... $ 3,500,000 $3,290,000 Income from operations . ... $ 1,150,000 $1,160,000 Other income . .. .. 150,000 140,000 $ 1,300,000 $1,300,000 170,000 150,000 Other expense (interest) . . . ..... $ 1,130,000 $1,150,000 Income before income tax . .. 230,000 225,000 Income tax expense .. . 900,000 $ 925,000 Net income . . .... . . ..... Starcel Inc. W hp
