Hw Nineteen Measures of Solvency and Profitability The comparative financial sta

Question

Hw 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 $67 on December 31, 2016. Blige Inc Comparative Retained Earnings Statement For the Years Ended December 31, 2016 and 2015 2016 2015 $1,562,400 $1,330,000 355,200 272,400 Retained earnings, January 1 Add net income for year Total Deduct dividends $1,917,600 $1,602,400 $11,200 $11,200 28,800 28,800 $40,000 $40,000 Retained earnings, December 31 $1,877,600 $1,562,400 On preferred stock On common stock Total Blige Inc Comparative Income Statement For the Years Ended December 31, 2016 and 2015 2016 2015 Sales Sales returns and allowances Sales Cost of goods sold Gross profit Selling expenses $2,002,495 $1,842,300 6,470 $1,992,535 $1,835,830 766,500 705,180 $1,226,035 $1,130,650 9,960 $1226,035 $1,130,650 $385,240 $484,190 328,175 284,370 713,415 768,560 $512,620 $362,090 26,980 23,110 $539,600 $385,200 136,000 75,200 Total operating expenses Income from operations Other income Other expense (interest) Income before income tax $403,600 $310,000 48,400 37,600 355,200 $272,400 Income tax expense Net income Blige Inc. Comparative Balance Sheet

Explanation / Answer

8-15

16-19

2016 2015 Average Fixed Assets $2,210,000.00 $1,989,000.00 $2,099,500.00 Long-Term Liab. $1,700,000.00 $940,000.00 $1,320,000.00 Net Income After Tax $355,200.00 $272,400.00 Pref. Dividend $11,200.00 $11,200.00 Sales $1,992,535.00 $1,835,830.00 Assets $4,859,440.00 $3,834,365.00 $4,346,902.50 StockHolder's Equity $2,557,600.00 $2,242,400.00 $2,400,000.00 Common Shareholders Equity $2,237,600.00 $1,922,400.00 $2,080,000.00 No. of Common Stock 36000 36000 Common Stock Dividend $28,800.00 $28,800.00 Fixed Assets to LT Liab. 1.59 Pref. Dividend Coverage (PAT/Pref. Div.) 31.71 Sales to Assets 0.46 Return on Stockholder's Equity 14.80% Return on Common Stockholders Equity 16.54%

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.