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The comparative financial statements of Blige Inc. are as follows. The market price of Blige Inc. common stock was $65 on December 31, 2014. Blige Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 2014 and 2013 2014 2013 Retained earnings, January 1 $3,336,500 $2,830,500 Add net income for year 800,800 579,800 Total $4,137,300 $3,410,300 Deduct dividends On preferred stock $9,800 $9,800 On common stock 64,000 64,000 Total $73,800 $73,800 Retained earnings, December 31 $4,063,500 $3,336,500 Blige Inc. Comparative Income Statement For the Years Ended December 31, 2014 and 2013 2014 2013 Sales $4,375,490 $4,025,500 Sales returns and allowances 21,770 14,150 Net sales $4,353,720 $4,011,350 Cost of goods sold 1,705,280 1,568,860 Gross profit $2,648,440 $2,442,490 Selling expenses $823,790 $1,059,920 Administrative expenses 701,750 622,490 Total operating expenses 1,525,540 1,682,410 Income from operations $1,122,900 $760,080 Other income 59,100 48,520 $1,182,000 $808,600 Other expense (interest) 272,000 149,600 Income before income tax $910,000 $659,000 Income tax expense 109,200 79,200 Net income $800,800 $579,800 Blige Inc. Comparative Balance Sheet December 31, 2014 and 2013 Dec. 31, 2014 Dec. 31, 2013 Assets Current assets Cash $725,560 $860,990 Temporary investments 1,098,140 1,426,770 Accounts receivable (net) 803,000 751,900 Inventories 598,600 467,200 Prepaid expenses 137,260 172,200 Total current assets $3,362,560 $3,679,060 Long-term investments 2,231,740 1,316,251 Property, plant, and equipment (net) 4,420,000 3,978,000 Total assets $10,014,300 $8,973,311 Liabilities Current liabilities $1,050,800 $2,266,811 Long-term liabilities Mortgage note payable, 8%, due 2019 $1,530,000 $0 Bonds payable, 8%, due 2015 1,870,000 1,870,000 Total long-term liabilities $3,400,000 $1,870,000 Total liabilities $4,450,800 $4,136,811 Stockholders' Equity Preferred $0.70 stock, $50 par $700,000 $700,000 Common stock, $10 par 800,000 800,000 Retained earnings 4,063,500 3,336,500 Total stockholders' equity $5,563,500 $4,836,500 Total liabilities and stockholders' equity $10,014,300 $8,973,311 Required: Determine the following measures for 2014, rounding to one decimal place, except for dollar amounts, which should be rounded to the nearest cent. Use the rounded answer of the requirement for subsequent requirement, if required. Assume 365 days a year. 1. Working capital $ 2311760 2. Current ratio 3.2 3. Quick ratio 2.50 4. Accounts receivable turnover 5.60 5. Number of days' sales in receivables 65.2 days 6. Inventory turnover 3.2 7. Number of days' sales in inventory 114.1 days 8. Ratio of fixed assets to long-term liabilities 1.3 9. Ratio of liabilities to stockholders' equity .80 10. Number of times interest charges are earned 11. Number of times preferred dividends are earned 81.7 12. Ratio of net sales to assets 13. Rate earned on total assets % 14. Rate earned on stockholders' equity 15.4 % 15. Rate earned on common stockholders' equity 17.6 % 16. Earnings per share on common stock $ 17. Price-earnings ratio 6.5 18. Dividends per share of common stock $ .8 19. Dividend yield 1.2 %

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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 are cash, temporary investments, and receivables.

4. Divide net sales by average accounts receivable. Average Accounts receivable = (Beginning Net Accounts Receivable + Ending Net Accounts 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 net sales divided by 365 days.

6. Divide cost of goods sold by average inventory. Average Inventory = (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 divided by 365 days.

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

9. Divide total liabilities 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 net 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 income 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' equity. Average total stockholders' equity = (Beginning total stockholders' equity + Ending total stockholders' equity) 2.

15. Divide net income minus preferred dividends from the retained earnings statement by average common stockholders' equity. Common stockholders' equity = Common stock + Retained earnings. Average common stockholders' equity = (Beginning common stockholders' equity + Ending common stockholders' equity) 2.

16. Divide net income minus preferred dividends from the retained earnings statement by common shares outstanding (common stock par value).

17. Divide common market share price by common earnings per share (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 from requirement 18) by market share price.

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