Nineteen Measures of Solvency and Profitability The comparativefinancial statements of Blige Inc. are as follows. The market priceof Blige Inc. common stock was $60 on December 31, 2016. Blige Inc.Comparative Retained Earnings Statement For the Years EndedDecember 31, 2016 and 2015 2016 2015 Retained earnings, January 1$2,832,200 $2,391,600 Add net income for year 624,800 489,800 Total$3,457,000 $2,881,400 Deduct dividends On preferred stock $8,400$8,400 On common stock 40,800 40,800 Total $49,200 $49,200 Retainedearnings, December 31 $3,407,800 $2,832,200 Blige Inc. ComparativeIncome Statement For the Years Ended December 31, 2016 and 20152016 2015 Sales $4,390,900 $4,039,600 Sales returns and allowances21,850 14,200 Sales $4,369,050 $4,025,400 Cost of goods sold1,606,730 1,478,190 Gross profit $2,762,320 $2,547,210 Sellingexpenses $967,370 $1,173,030 Administrative expenses 824,050688,920 Total operating expenses 1,791,420 1,861,950 Income fromoperations $970,900 $685,260 Other income 51,100 43,740 $1,022,000$729,000 Other expense (interest) 312,000 172,000 Income beforeincome tax $710,000 $557,000 Income tax expense 85,200 67,200 Netincome $624,800 $489,800 Blige Inc. Comparative Balance SheetDecember 31, 2016 and 2015 Dec. 31, 2016 Dec. 31, 2015 AssetsCurrent assets Cash $933,510 $612,510 Temporary investments1,412,880 1,015,010 Accounts receivable (net) 788,400 744,600Inventories 584,000 452,600 Prepaid expenses 176,608 122,500 Totalcurrent assets $3,895,398 $2,947,220 Long-term investments1,268,982 29,127 Property, plant, and equipment (net) 4,680,0004,212,000 Total assets $9,844,380 $7,188,347 Liabilities Currentliabilities $1,256,580 $926,147 Long-term liabilities Mortgage notepayable, 8%, due 2021 $1,750,000 $0 Bonds payable, 8%, due 20172,150,000 2,150,000 Total long-term liabilities $3,900,000$2,150,000 Total liabilities $5,156,580 $3,076,147 Stockholders'Equity Preferred $0.7 stock, $50 par $600,000 $600,000 Commonstock, $10 par 680,000 680,000 Retained earnings 3,407,8002,832,200 Total stockholders' equity $4,687,800 $4,112,200 Totalliabilities and stockholders' equity $9,844,380 $7,188,347Required: Determine the following measures for 2016, rounding toone decimal place, except for dollar amounts, which should berounded to the nearest cent. Use the rounded answer of therequirement for subsequent requirement, if required. Assume 365days a year.

Required:

Determine the following measures for 2016, rounding to onedecimal place, except for dollar amounts, which should be roundedto the nearest cent. Use the rounded answer of the requirement forsubsequent requirement, if required. Assume 365 days a year.

1. Working capital	$
2. Current ratio
3. Quick ratio
4. Accounts receivable turnover
5. Number of days' sales in receivables		days
6. Inventory turnover
7. Number of days' sales in inventory		days
8. Ratio of fixed assets to long-termliabilities
9. Ratio of liabilities to stockholders'equity
10. Number of times interest charges areearned
11. Number of times preferred dividends areearned
12. Ratio of sales to assets
13. Rate earned on total assets		%
14. Rate earned on stockholders' equity		%
15. Rate earned on common stockholders'equity		%
16. Earnings per share on common stock	$
17. Price-earnings ratio
18. Dividends per share of common stock	$
19. Dividend yield		%

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1. Subtract current liabilities from current assets.

2. Divide current assets by current liabilities.

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

4. Divide sales by average accounts receivable. Average Accountsreceivable = (Beginning Net Accounts Receivable + Ending NetAccounts 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 salesdivided by 365 days.

6. Divide cost of goods sold by average inventory. AverageInventory = (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 dividedby 365 days.

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

9. Divide total liabilities by total stockholders' equity.

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

11. Divide net income by preferred dividends from the retainedearnings statement.

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

13. Divide the sum of net income plus interest expense byaverage total assets. Average total assets = (Beginning totalassets + 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 theretained earnings statement by average common stockholders' equity.Common stockholders' equity = Common stock + Retained earnings.Average common stockholders' equity = (Beginning commonstockholders' equity + Ending common stockholders' equity) ÷ 2.

16. Divide net income minus preferred dividends from theretained earnings statement by common shares outstanding (commonstock ÷ par value).

17. Divide common market share price by common earnings pershare (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 fromrequirement 18) by market share price.

Learning Objective 2, Learning Objective 3.