Comparative financial statement data of danfield, inc., follow:

Comparative financial statement data of Danfield, Inc., follow:

 

  Danfield, Inc.   Comparative Income Statement   Years Ended December 31, 2012 and 2011     2015 2014   Net sales 467,000 428,000   Cost of goods sold 237,000 218,000   Gross profit 230,000 210,000   Operating expenses 136,000 134,000   Income from operations 94,000 76,000   Interest expense 9,000 10,000   Income before income tax 85,000 66,000   Income tax expense 24,000 27,000   Net income 61,000 39,000            Danfield, Inc.   Comparative Balance Sheet  Years Ended December 31, 2012 and 2011      2015 2014  2013*   Current assets:             Cash              97,000             95,000    Current receivables, net            112,000           118,000           102,000  Inventories            145,000           163,000           203,000  Prepaid expenses              12,000              5,000    Total current assets            366,000           381,000    Property, plant, and equipment, net            211,000           179,000    Total assets            577,000           560,000           598,000          Total current liabilities            225,000           246,000    Long-term liabilities            114,000             97,000    Total liabilities            339,000           343,000    Preferred stock, 3%            108,000           108,000    Common stockholders’ equity, no par            130,000           109,000    Total liabilities and stockholders’ equity            577,000           560,000           * Selected 2010 amounts           1. Market price of Danfield’s common stock: $86.58 at December 31, 2015 and $46.54 at December 31, 2014. 2. Common shares outstanding: 12,000 during 2015 and 10,000 during 2014 and 2013. 3. All sales on credit.               Required:       A.  Compute the following ratios for 2015 and 2014:    

1.  Current ratio

2.  Cash ratio

      3.  Times-interest-earned ratio       4.  Inventory turnover       5.  Gross profit percentage       6.  Debt to equity ratio       7.  Rate of return on common stockholders’ equity     8.  Earnings per share of common stock    

9.  Price/earnings ratio

 

B.  Decide (a) whether Danfield’s ability to pay debts and to sell inventory improved or deteriorated during 2015 and (b) whether the investment attractiveness of its common stock appears to have increased or decreased.