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

1. Market price of Banfield€™s common stock: $ 49.50 at December 31, 2014, and $ 27.02 at December 31, 2013
2. Common shares outstanding: 12,000 during 2014 and 12,000 during 2013
3. All sales are credit sales

Requirements
1. Compute the following ratios for 2014 and 2013:
a. Current ratio
b. Times- interest- earned ratio
c. Inventory turnover
d. Return on common stockholders€™ equity
e. Earnings per share of common stock
f. Price/ earnings ratio
2. Decide
(a) Whether Banfield€™s ability to pay debts and to sell inventory improved or deteriorated during 2014 and
(b) Whether the investment attractiveness of its common stock appears to have increased ordecreased.

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Banfield, Inc. Comparative Income Statement For the Years Ended December 31, 2014 and 2013 amounts in thousands) 2014 2013 456,6505 423,260 216,000 6 Sales revenues 7 Less: Cost of goods sold 8 Gross profit 9 Less:Operating expenses 10 Operating income 11 Less Interest expense 12 Income before income taxes 13 Less: Income tax expense 14 Net income 15 245,000 211650 5 207,260 131,000 76,260 12,400 135,000 76,650 S 10,500 66,150 S ,850 58 39,100 Banfield, Inc. Comparative Balance Sheets December 31, 2014 and 2013 (amounts in thousands) 2014 2013 2012 Assets 7 Current assets: 8 Cash 9 Accounts receivable 10 Inventory 11 Prepaid expenses 12Total current assets 13 Property, plant, and equipment, net 14 Total assets 15 16 17 Current liabilities 18 Long-tem liabilities 19Total liabilities 20 21 22, Preferred stock5% 194.600 59 101000 111500 135,000 142,000 $010 145,000 215,000 11,500 8,000 352,0005 390,000 208,000 173,000 labilities 98,000 318,000 2 5,000 265,000 Stockholders equity 110,000 110,000 242000 S298000 560,000S 563000 , 23 Total common stockholders' equity 188000S 52,000 24 Totalstockholders' equity 25 26 Total liabilities and equity 27