Hi,

I need help with comparative financial statements and calculating financial and profitability solvency. Attached are directions and ways to calculate for all measures.

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 $60 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 Add net income for year $2,571,475 552,000 $2,179,925 446,500 Total $3,123,475 $2,626,425 $7,700 47,250 $7,700 47,250 $54,950 $54,950 $3,068,525 $2,571,475 Deduct dividends On preferred stock On common stock Total Retained earnings, December 31 Blige Inc. Comparative Income Statement For the Years Ended December 31, 2016 and 2015 2016 2015 Sales Sales returns and allowances $3,512,720 17,480 $3,231,700 11,360 Sales Cost of goods sold $3,495,240 1,185,520 $3,220,340 1,090,680 Gross profit $2,309,720 $2,129,660 Selling expenses Administrative expenses $806,430 686,960 $965,640 567,120 Total operating expenses 1,493,390 1,532,760 Income from operations Other income $816,330 42,970 $596,900 38,100 Other expense (interest) $859,300 232,000 $635,000 128,000 Income before income tax Income tax expense $627,300 75,300 $507,000 60,500 Net income $552,000 $446,500 Blige Inc. Comparative Balance Sheet December 31, 2016 and 2015 Dec. 31, 2016 Dec. 31, 2015 Assets Current assets Cash Temporary investments Accounts receivable (net) $609,320 922,220 642,400 $547,350 907,040 605,900 Inventories Prepaid expenses 481,800 115,279 365,000 109,470 Total current assets Long-term investments Property, plant, and equipment (net) $2,771,019 2,111,179 3,190,000 $2,534,760 776,587 2,871,000 Total assets $8,072,198 $6,182,347 $923,673 $830,872 $1,300,000 1,600,000 $0 1,600,000 $2,900,000 $1,600,000 $3,823,673 $2,430,872 $550,000 $550,000 630,000 630,000 Liabilities Current liabilities Long-term liabilities Mortgage note payable, 8%, due 2021 Bonds payable, 8%, due 2017 Total long-term liabilities Total liabilities Stockholders' Equity Preferred $0.7 stock, $50 par Common stock, $10 par Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 3,068,525 2,571,475 $4,248,525 $3,751,475 $8,072,198 $6,182,347 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 $ % Feedback 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 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 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 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