Comparative financial statement data of Garfield, Inc. follow 1. Market price of Garfields common stock: $69.36 at

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Comparative financial statement data of Garfield, Inc. follow

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1. Market price of Garfield’s common stock: $69.36 at December 31, 2024, and $38.04 at December 31, 2023.
2. Common shares outstanding: 14,000 on December 31, 2024, and 12,000 on December 31, 2023 and 2022.
3. All sales are on credit.
Requirements

1. Compute the following ratios for 2024 and 2023:

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 Garfield’s ability to pay debts and to sell inventory improved or deteriorated during 2024 and

(b) whether the investment attractiveness of its common stock appears to have increased or decreased.

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Horngrens Financial And Managerial Accounting The Financial Chapters

ISBN: 9781292412320

7th Global Edition

Authors: Tracie Miller-Nobles, Brenda Mattison, Ella Mae Matsumura

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