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

1. Market price of Danfield's common stock: $86.58 at December 31, 2012, and $46.54 at December 31, 2011.
2. Common shares outstanding: 12,000 during 2012 and 10,000 during 2011 and 2010.
3. All sales on credit.
Requirements
1. Compute the following ratios for 2012 and 2011:
(a) Current ratio
(b) Times-interest-earned ratio
(c) Inventory turnover
(d) Gross profit percentage
(e) Debt to equity ratio
(f) Rate of return on common stockholders' equity
(g) Earnings per share of common stock
(h) Price/earnings ratio
2. Decide
(a) Whether Danfield's ability to pay debts and to sell inventory improved or deteriorated during 2012 and
(b) Whether the investment attractiveness of its common stock appears to have increased ordecreased.

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DANFIELD, INC. Comparative Income Statement Years Ended December 31, 2012 and 2011 2012 2011 Net sales Cost of goods sold Gross profit Operating expenses Income from operations $ 467,000 $ 428,000 218,000 S 230,000 $ 210,000 237,000 136,000 134,000 $ 94,000 $ 76,000 10,000 Interest expense 9,000 Income before income tax $ 85,000 $ 66,000 27,000 Income tax expense 24,000 S 61,000 $ 39,000 Net income