Comparative financial statement data of Robinson Optical Mart follow:

Other information:
1. Market price of Robinson common stock: $88.17 at December 31, 2014, and $77.01 at December 31, 2013
2. Common shares outstanding: 18,000 during 2014 and 17,800 during 2013
3. All sales on credit

Requirements
1. Compute the following ratios for 2014 and 2013:
a. Current ratio
b. Quick (acid-test) ratio
c. Receivables turnover and days’ sales outstanding (DSO) (round to the nearest whole day)
d. Inventory turnover and days’ inventory outstanding (DIO) (round to the nearest whole day)
e. Accounts payable turnover and days’ payable outstanding (DPO) (use cost of goods sold in the numerator of the turnover ratio and round DPO to the nearest whole day).
f. Cash conversion cycle (in days)
g. Times-interest-earned ratio
h. Return on assets (use DuPont Analysis)
i. Return on common stockholders’ equity (use DuPont Analysis)
j. Earnings per share of common stock
k. Price-earnings ratio
2. Decide whether
(a) Robinson’s financial position improved or deteriorated during 2014 and
(b) The investment attractiveness of Robinson’s common stock appears to have increased or decreased.
3. How will what you learned in this problem help you evaluate aninvestment?

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A1 Robinson Optical Mart Comparative Income Statements Years Ended December 31, 2014 and 2013 2014 2013 Net sales 875,000 576,000 957,000 675,000 282,000 129,000 153,000 37,000 116,000 40,000 6,000 4 Cost of goods sold Gross profit Operating expenses Income from operations 142,000 157,000 45,000 112,000 39,000 73,000 2 Interest expense Income before income tax Income tax expense 1 Net income A1 Robinson Optical Mart Comparative Balance Sheets December 31, 2014 and 2013 2014 Current assets: 45,000 S 49,000 Cash Current receivables, net 58,000 200,000 181,000 217,000 302,000 4,000 568,000 285,000 5 286,000 29,000 522,000 277,000 853,000 799,000 Inventories Prepaid expenses Total current assets Property, plant, and equipment, net 10 Total assets 700,000 12 Accounts payable 160,000 135,000 295,000 243,000 538,000 315,000 110,000 188,000 298,000 231,000 529,000 Other current liabilities Total current liabilities 15 Long-term liabilities 16 Total liabilities 18 Total liabilities and stockholders' equity Sclocted 2012 amounts Common stockholders' equity, no par 270000 199,000 853,000 799,000