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nineteen measures of solvency and profitability

The comparative financial statements of Blige Inc. are as follows. the market price of Blige Inc. current stock was $63 on December 31, 2016

Print Item Calculator eBook of the requirement for subsequent requirement, if required. Assume 365 days a year 1,316,91 1. Working capital 3.3 2. Current ratio 2.6 3. Quick ratio 5.2 4. Accounts receivable turnover 70.2 days 5. Number of days' sales in receivables 3.1 6. Inventory turnover 117.7 days 7. Number of days' sales in inventory .1 8. Ratio of fixed assets to long-term liabilities V 1.1 9. Ratio of liabilities to stockholders' equity 3.1 X 10. Number of times interest charges are earned 30.2 11. Number of times preferred dividends are earned 0.48 X 12. Ratio of sales to assets 7.5 X % 13. Rate earmed on total assets 14.4 % 14. Rate earned on stockholders' equity 0.16 X% 15. Rate earned on common stockholders' equity X 16. Earnings per share on common stock 6.99 17. Price-earnings ratio 0.85 18. Dividends per share of common stock 1.35 X % 19. Dividend yield Foodback eBook Calculator Print Item 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 $63 on December 31, 2016 Blige Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 2016 and 2015 2016 2015 Retained earnings, January 1 $1,421,300 $1,212,400 Add net income for year 316,800 248,300 Total $1,738,100 $1,450,700 Deduct dividends On preferred stock $10,500 $10,500 On common stock 28,900 28,900 Total $39,400 $39,400 Retained earnings, December 31 $1,698,700 $1,421,300 Blige Inc. Comparative Income Statement For the Years Ended December 31, 2016 and 2015 2016 2015 Sales $2,002,860 $1,842,600 Sales returns and allowances 9,960 6,470 Sales $1,992,900 $1,836,130 Check My Work 1 more Check My Work uses remaining. Previous All work saved Email Instructor Save and Exit Submit Assignment for Grading Blige Inc. Comparative Income Statement For the Years Ended December 31, 2016 and 2015 2016 2015 Sales $2,002,860 $1,842,600 Sales returns and allowances 9,960 6,470 Sales $1,992,900 $1,836,130 Cost of goods sold 792,050 728,690 Gross profit $1,200,850 $1,107,440 Selling expenses $381,700 $478,570 Administrative expenses 325,150 281,070 Total operating expenses 706,850 759,640 Income from operations $494,000 $347,800 Other income 26,000 22,200 $520,000 $370,000 Other expense (interest) 160,000 88,000 Income before income tax $360,000 $282,000 Income tax expense 43,200 33,700 $316,800 Net income $248,300 Blige Inc. Comparative Balance Sheet December 31, 2016 and 2015 Check My Work more Check My Work uses remaining. Blige Inc. Comparative Balance Sheet December 31, 2016 and 2015 Dec. 31, 2015 Dec. 31, 2016 Assets Current assets $299,260 $445,210 Cash 495,930 673,840 Temporary investments 372,300 394,200 Accounts receivable (net) 219,000 292,000 Inventories 59,850 84,231 Prepaid expenses $1,446,340 $1,889,481 Total current assets 101,328 821,789 Long-term investments 1,980,000 2,200,000 Property, plant, and equipment (net) $3,527,668 $4,911,270 Total assets Liabilities $572,570 $366,368 Current liabilities Long-term liabilities $0 $900,000 Mortgage note payable, 8% , due 2021 1,100,000 1,100,000 Bonds payable, 8%, due 2017 $1,100,000 $2,000,000 Total long-term liabilities $1,466,368 $2,572,570 Total liabilities Total assets $4,911,270 $3,527,668 Liabilities $572,570 $366,368 Current liabilities Long-term liabilities Mortgage note payable, 8 % , due 2021 $900,000 $0 1,100,000 Bonds payable, 8%, due 2017 1,100,000 $2,000,000 $1,100,000 Total long-term liabilities $1,466,368 $2,572,570 Total liabilities Stockholders' Equity Preferred $0.7 stock, $20 par $300,000 $300,000 340,000 Common stock, $10 par 340,000 1,421,300 Retained earnings 1,698,700 $2,338,700 $2,061,300 Total stockholders' equity $3,527,668 $4,911,270 Total liabilities and stockholders' equity Required: Determine the following measures for 2016, rounding to one decimal place, xcept for dollar amounts, which should be rounded to the nes of the requirement for subsequent requirement, if required. Assume 365 days a year 1,316,91 1. Working capital 3.3 2. Current ratio 2.6 3. Quick ratio 5.2 4. Accounts receivable turs ver 70.2 days 5. Number of days' sales in receivables 3.1 6 Inuentony.turnover Check My Work 1 more Check My Work uses remaining. Email Instructor Save and Ex All work saved. V oBook Calculator Print Item YCheck My Work 1. Subtract current liabilities from current assets 2. Divide current assets by current labilities 3. Divide quick assets by current iabilities. Quick assets are cash, temporary investments, and recevables 4. Divide sales by average accounts receivable. Average Accourts recelivable (Beginning Net Accounts Receivable Ending Net Accounts Receivable)-2 5. Divide average accounts receivable by average daily sales. Average Accunts receivable (Beginning Net Accounts Receivable+ Ending Net Accounts Receivable) 2 Average daily sales are sales divided by 365 days 6. Divide cost of goods sold by average inventory Average Invertory (Beginning Inventories Ending inventon)-2 7. Divide average inventory by average daly cost of goods sold. Average Inventory (Beginning Inventories Ending Inventories) 2. Average daly 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 labilities 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 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 inoome 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' equty Average total stockholders equity (Beginning total stockholdersequity Ending total stockholders eguity) 2 15. Divide net income minus prelerred dividends from the retained eamings statement by average common stockholders equity Common stockholders' equty Common stock Retainad earmings Average common stockhalders equity (Baginning common stockholders equity+Ending common stockholders equity) 2 16. Divide net income minus prefemred dividends from the retained eamings statement by common shares cutstarnding (common stock par value). 17. Divide common market share price by oommon earmings per share (use answer from requirement 16) 18. Divide common dividends (rom Retained Eamings Statement) by common shares outstanding (oommon stock par value) 19 Divide common dividends per share (use answer from requirement 18) by market share price Learming Oojecive 2, Leaming Objective 3

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