Question

Nineteen Measures of Solvency and Profitability

The comparative financial statements of Blige Inc. are asfollows. The market price of Blige Inc. common stock was $67 onDecember 31, 2014.

BligeInc.
ComparativeRetained Earnings Statement
For the YearsEnded December 31, 2014 and 2013
			2014		2013
Retained earnings,January 1			$2,462,275		$2,085,025
Add net income foryear			585,200		427,000
Total			$3,047,475		$2,512,025
Deduct dividends
	On preferred stock		$7,000		$7,000
	On common stock		42,750		42,750
		Total	$49,750		$49,750
Retained earnings,December 31			$2,997,725		$2,462,275

BligeInc.
ComparativeIncome Statement
For the YearsEnded December 31, 2014 and 2013
	2014		2013
Sales	$3,805,440		$3,501,000
Sales returns and allowances	18,930		12,300
Net sales	$3,786,510		$3,488,700
Cost of goods sold	1,312,540		1,207,540
Gross profit	$2,473,970		$2,281,160
Selling expenses	$855,260		$1,061,320
Administrative expenses	728,560		623,320
Total operating expenses	1,583,820		1,684,640
Income from operations	$890,150		$596,520
Other income	46,850		38,080
	$937,000		$634,600
Other expense (interest)	272,000		149,600
Income before income tax	$665,000		$485,000
Income tax expense	79,800		58,000
Net income	$585,200		$427,000

BligeInc.
ComparativeBalance Sheet
December 31,2014 and 2013
			Dec. 31, 2014		Dec. 31, 2013
Assets
Current assets
	Cash		$789,490		$607,960
	Temporaryinvestments		1,194,900		1,007,470
	Accounts receivable(net)		686,200		642,400
	Inventories		511,000		394,200
	Prepaid expenses		149,354		121,590
		Total current assets	$3,330,944		$2,773,620
Long-terminvestments			1,131,279		319,300
Property, plant, andequipment (net)			4,080,000		3,672,000
Total assets			$8,542,223		$6,764,920
Liabilities
Currentliabilities			$1,074,498		$1,362,645
Long-termliabilities
	Mortgage note payable,8%, due 2019		$1,530,000		$0
	Bonds payable, 8%, due2015		1,870,000		1,870,000
		Total long-term liabilities	$3,400,000		$1,870,000
Total liabilities			$4,474,498		$3,232,645
Stockholders'Equity
Preferred $0.70 stock,$50 par			$500,000		$500,000
Common stock, $10par			570,000		570,000
Retained earnings			2,997,725		2,462,275
	Total stockholders'equity		$4,067,725		$3,532,275
Total liabilities andstockholders' equity			$8,542,223		$6,764,920

Required:

Determine the following measures for 2014, 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. Workingcapital	$
2. Currentratio
3. Quickratio
4. Accountsreceivable turnover
5. Number of days'sales in receivables		days
6. Inventoryturnover
7. Number of days'sales in inventory		days
8. Ratio of fixedassets to long-term liabilities
9. Ratio ofliabilities to stockholders' equity
10. Number oftimes interest charges are earned
11. Number oftimes preferred dividends are earned
12. Ratio of netsales to assets
13. Rate earned ontotal assets		%
14. Rate earned onstockholders' equity		%
15. Rate earned oncommon stockholders' equity		%
16. Earnings pershare on common stock	$
17. Price-earningsratio
18. Dividends pershare of common stock	$
19. Dividendyield		%