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Victor Audio Company
Comparative Income Statement
For the Years Ended December 31, 2016 and 2015
	2016	2015
Sales (all on account)	$ 2,170,000	$ 1,960,000
Sales returns and allowances	70,000	60,000
Net sales	$ 2,100,000	$ 1,900,000
Cost of goods sold	840,000	770,000
Gross profit	$ 1,260,000	$ 1,130,000
Selling expenses	$ 410,000	$ 370,000
Administrative expenses	305,000	290,000
Total operating expenses	$ 715,000	$ 660,000
Income from operations	$ 545,000	$ 470,000
Other income	20,000	15,000
	$ 565,000	$ 485,000
Other expense (interest)	104,000	72,000
Income before income tax	$ 461,000	$ 413,000
Income tax expense	41,000	35,000
Net income	$ 420,000	$ 378,000
Victor Audio Company
Comparative Retained Earnings Statement
For the Years Ended December 31, 2016 and 2015
	Dec. 31, 2016	Dec. 31, 2015
Retained earnings, January 1	$ 394,000	$ 50,000
Add net income for year	420,000	378,000
Total	$ 814,000	$ 428,000
Deduct dividends:
On preferred stock	$ 30,000	$ 18,000
On common stock	16,000	16,000
Total	$ 46,000	$ 34,000
Retained earnings, December 31	$ 768,000	$ 394,000
Victor Audio Company
Comparative Balance Sheet
For the Years Ended December 31, 2016 and 2015
Assets	Dec. 31, 2016	Dec. 31, 2015
Current assets:
Cash	$ 87,000	$ 176,000
Marketable securities	258,000	335,000
Accounts receivable (net)	261,000	235,000
Inventories	212,000	190,000
Prepaid expenses	25,000	18,000
Total current assets	$ 843,000	$ 954,000
Long-term investments	1,000,000	400,000
Property, plant, and equipment (net)	1,675,000	1,050,000
Total assets	$ 3,518,000	$ 2,404,000
Liabilities
Current liabilities	$ 450,000	$ 310,000
Long-term liabilities:
Mortgage note payable, 10%, due 2010	$ 400,000	$ -
Bonds payable, 12%, due 2009	600,000	600,000
Total long-term liabilities	$ 1,000,000	$ 600,000
Total liabilities	$ 1,450,000	$ 910,000
Stockholders' Equity
Preferred $8 stock, $100 par	$ 500,000	$ 300,000
Common stock, $10 par	800,000	800,000
Retained earnings	768,000	394,000
Total stockholders' equity	$ 2,068,000	$ 1,494,000
Total liabilities and stockholders' equity	$ 3,518,000	$ 2,404,000

Victor Audio Company
Comparative Balance Sheet
For the Years Ended December 31, 2016 and 2015
Assets	Dec. 31, 2016	Dec. 31, 2015
Current assets:
Cash	$ 87,000	$ 176,000
Marketable securities	258,000	335,000
Accounts receivable (net)	261,000	235,000
Inventories	212,000	190,000
Prepaid expenses	25,000	18,000
Total current assets	$ 843,000	$ 954,000
Long-term investments	1,000,000	400,000
Property, plant, and equipment (net)	1,675,000	1,050,000
Total assets	$ 3,518,000	$ 2,404,000
Liabilities
Current liabilities	$ 450,000	$ 310,000
Long-term liabilities:
Mortgage note payable, 10%, due 2010	$ 400,000	$ -
Bonds payable, 12%, due 2009	600,000	600,000
Total long-term liabilities	$ 1,000,000	$ 600,000
Total liabilities	$ 1,450,000	$ 910,000
Stockholders' Equity
Preferred $8 stock, $100 par	$ 500,000	$ 300,000
Common stock, $10 par	800,000	800,000
Retained earnings	768,000	394,000
Total stockholders' equity	$ 2,068,000	$ 1,494,000
Total liabilities and stockholders' equity	$ 3,518,000	$ 2,404,000

The Market Price Per Share is $141.

Working capital			$
	Numerator	Denominator	Calculated Answer
Current ratio
Acid-test ratio
Accounts receivable turnover
Number of days' sales in receivables
Inventory turnover
Number of days' sales in inventory
Ratio of fixed assets to long-term liabilities
Ratio of liabilities to stockholders' equity
Number of times interest charges earned
Number of times preferred dividends earned
Ratio of net sales to assets
Rate earned on total assets			%
Rate earned on stockholders' equity			%
Rate earned on common stockholders' equity			%
Earnings per share on common stock			$
Price-earnings ratio
Dividends per share of common stock			$
Dividend yield			%

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