Reference no: EM131211169
The comparative financial statements of Blige Inc. are as follows. The market price of Blige Inc. common stock was $64 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 $1,309,050 $1,111,450
Add net income for year 292,000 227,700
Total $1,601,050 $1,339,150
Deduct dividends
On preferred stock $9,100 $9,100
On common stock 21,000 21,000
Total $30,100 $30,100
Retained earnings, December 31 $1,570,950 $1,309,050
Blige Inc.
Comparative Income Statement
For the Years Ended December 31, 2016 and 2015
2016 2015
Sales $1,870,810 $1,721,100
Sales returns and allowances 9,310 6,050
Sales $1,861,500 $1,715,050
Cost of goods sold 657,000 604,440
Gross profit $1,204,500 $1,110,610
Selling expenses $418,660 $506,980
Administrative expenses 356,630 297,750
Total operating expenses 775,290 804,730
Income from operations $429,210 $305,880
Other income 22,590 19,520 $451,800 $325,400
Other expense (interest) 120,000 66,400
Income before income tax $331,800 $259,000
Income tax expense 39,800 31,300
Net income $292,000 $227,700
Blige Inc.
Comparative Balance Sheet December 31, 2016 and 2015 Dec. 31, 2016 Dec. 31, 2015
Assets Current assets Cash $299,520 $313,070
Temporary investments 453,330 518,810
Accounts receivable (net) 321,200 299,300
Inventories 248,200 189,800
Prepaid expenses 56,672 62,610
Total current assets $1,378,922 $1,383,590
Long-term investments 719,883 236,028
Property, plant, and equipment (net) 1,950,000 1,755,000
Total assets $4,048,805 $3,374,618
Liabilities Current liabilities $417,855 $675,568
Long-term liabilities Mortgage note payable, 8%, due 2021 $670,000 $0
Bonds payable, 8%, due 2017 830,000 830,000
Total long-term liabilities $1,500,000 $830,000
Total liabilities $1,917,855 $1,505,568
Stockholders' Equity Preferred $0.7 stock, $20 par $260,000 $260,000
Common stock, $10 par 300,000 300,000
Retained earnings 1,570,950 1,309,050
Total stockholders' equity $2,130,950 $1,869,050
Total liabilities and stockholders' equity $4,048,805 $3,374,618
Required: Determine the following measures for 2016, 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 $
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-term liabilities
9. Ratio of liabilities to stockholders' equity
10. Number of times interest charges are earned
11. Number of times preferred dividends are earned
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 %