comparative financial statements of Blige Inc.

The comparative financial statements of Blige Inc. are as follows. The market price of Blige Inc. common stock was $63 on December 31, 2012.

Blige Inc.
Comparative Retained Earnings Statement
For the Years Ended December 31, 2012 and 2011
	2012	2011
Retained earnings, January 1	$1,262,100	$1,067,600
Add net income for year	300,000	218,700
Total	$1,562,100	$1,286,300
Deduct dividends:
On preferred stock	$9,800	$9,800
On common stock	14,400	14,400
Total	$24,200	$24,200
Retained earnings, December 31	$1,537,900	$1,262,100

Blige Inc.
Comparative Income Statement
For the Years Ended December 31, 2012 and 2011
	2012	2011
Sales	$1,787,170	$1,644,200
Sales returns and allowances	8,890	5,780
Net sales	$1,778,280	$1,638,420
Cost of goods sold	613,200	564,140
Gross profit	$1,165,080	$1,074,280
Selling expenses	$392,700	$490,010
Administrative expenses	334,530	287,790
Total operating expenses	727,230	777,800
Income from operations	$437,850	$296,480
Other income	23,050	18,920
	$460,900	$315,400
Other expense (interest)	120,000	66,400
Income before income tax	$340,900	$249,000
Income tax expense	40,900	30,300
Net income	$300,000	$218,700

Blige Inc.
Comparative Balance Sheet
December 31, 2012 and 2011
	Dec. 31, 2012	Dec. 31, 2011
Assets
Current assets:
Cash	$288,770	$300,730
Temporary investments	437,050	498,350
Accounts receivable (net)	328,500	306,600
Inventories	248,200	189,800
Prepaid expenses	54,632	60,150
Total current assets	$1,357,152	$1,355,630
Long-term investments	754,858	195,781
Property, plant, and equipment (net)	1,950,000	1,755,000
Total assets	$4,062,010	$3,306,411
Liabilities
Current liabilities	$424,110	$614,311
Long-term liabilities:
Mortgage note payable, 8%, due 2017	$670,000	$0
Bonds payable, 8%, due 2021	830,000	830,000
Total long-term liabilities	$1,500,000	$830,000
Total liabilities	$1,924,110	$1,444,311
Stockholders' Equity
Preferred $0.70 stock, $20 par	$280,000	$280,000
Common stock, $10 par	320,000	320,000
Retained earnings	1,537,900	1,262,100
Total stockholders' equity	$2,137,900	$1,862,100
Total liabilities and stockholders' equity	$4,062,010	$3,306,411

Instructions:

Determine the following measures for 2012, rounding to one decimal place, except for dollar amounts, which should be rounded to the nearest cent. 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:
6. Inventory turnover:
7. Number of days' sales in inventory:
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 earned:
12. Ratio of net 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:		%

11 years ago

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