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

1. Market price of Topfield's common stock: $53.13 at December 31, 2012, and $35.64 at December 31, 2011
2. Common shares outstanding: 13,000 during 2012 and 13,000 during 2011
3. All sales are credit sales
Requirements
1. Compute the following ratios for 2012 and 2011:
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 Topfield'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 or decreased.

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Topsfield, Inc. Comparative Income Statement Years Ended December 31,2012 and 2011 2012 2011 $463,560 $410,600 248,000 212,000 $215,560 $198,600 131,000 125,000 S 84,560 $ 73,600 11,200 11,500 S 73,360 $ 62,100 8,500 S 66,600 53,600 Net s Cost of goods s Gross profit Income from operations Intereste Income before income tax Income Net income tax expense 6,760 Topsfield, Inc. Comparative Balance Sheet December 31, 2012 and 2011 2012 2011 2010* Current assets: $99,000 $100,000 Current receivables, Inventories Prepaid expenses 100,500 107,500 $ 99,000 139,000 181,000 158,200 10,000 6,500 $348,500 $395,000 207,000 179,000 $555,500 $574,000 $212,500 $250,000 131,000 67,000 $343,500 $317,000 85,000 85,000 Total current assets Property, plant, and equipment, net Total current liabilities Long-term liabilities Total liabilities Preferred stock, 8% 127,000 172,000 188,000 Total liabilities and stockholders' equity .. equity.$555,500 $574,000 Selected 2010 amomts