Comparative financial statement data of Canfield, Inc. follow:

1. Market price of Canfield€™s common stock: $84.32 at December 31, 2016, and $51.75 at December 31, 2015.
2. Common shares outstanding: 10,000 during 2016 and 9,000 during 2015 and 2014. 3. All sales are on credit.
Requirements
1. Compute the following ratios for 2016 and 2015:
a. Current ratio
b. Cash ratio
c. Times-interest-earned ratio
d. Inventory turnover
e. Gross profit percentage
f. Debt to equity ratio
g. Rate of return on common stockholders€™ equity
h. Earnings per share of common stock
i. Price/earnings ratio
2. Decide
(a) Whether Canfield€™s ability to pay debts and to sell inventory improved or deteriorated during 2016
(b) Whether the investment attractiveness of its common stock appears to have increased or decreased.

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CANFIELD, INC. Comparative Income Statement Years Ended December 31, 2016 and 2015 2016 2015 $459,000 237,000 222,000 137,000 S 424,000 Net Sales Cost of Goods Sold Gross Profit Operating Expenses Income from Operations Interest Expense Income Before Income Tax Income Tax Expense Net Income 85,000 12,000 73,000 19,000 54,000 35,000 215,000 209,000 135,000 74,000 14,000 60,000 25,000 CANFIELD, INC. Comparative Balance Sheet December 31, 2016 and 2015 2016 2015 2014 Assets Current Assets: 99,000 96,000 Cash Accounts Receivable, Net Merchandise Inventory Prepaid Expenses Total Current Assets 110,000 145,000 12,000 366,000 219,000 16,000 101,000 210,000 163,000 7,000 382,000 180,000 585,000 562,000 Property, Plant, and Equipment, Net Total Assets 598,000 Liabilities Total Current Liabilities Long-term Liabilities Total Liabilities $ 223,000 246,000 95,000 341,000 120,000 343,000 Stockholders' Equity Preferred Stock, 3% Common Stackholders' Equity, no par Total Liabilities and Stockholders' Equity 98,000 123,000 $585,000 562,000 98,000 144,000 85,000