Comparative financial statement data of Panfield Optical Mart follow:

Other information:
1. Market price of Panfield common stock: \(\$ 94.38\) at December 31, 2020; and \(\$ 85.67\) at December 31, 2019 2. Common shares outstanding: 15,000 during 2020 and 10,000 during 2019 3. All sales on credit {Requirements}
1. Compute the following ratios for 2020 and 2019.

a. Current ratio

b. Quick (acid-test) ratio

c. Receivables turnover and days' sales outstanding (DSO) (round to nearest whole day)

d. Inventory turnover and days' inventory outstanding (DIO) (round to nearest whole day)

e. Accounts payable turnover and days' payable outstanding (DPO) (round to nearest whole day).

f. Cash conversion cycle (in days)
g. Times-interest-earned ratio h. Return on assets i. Return on common shareholders' equity j. Earnings per share of common stock k. Price/earnings ratio 2. Decide whether

(a) Panfield's financial position improved or deteriorated during 2020 , and

(b) the investment attractiveness of Panfield's common stock appears to have increased or decreased.
3. How will what you learned in this problem help you evaluate an investment?

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A Panfield Optical Mart Comparative Income Statement For the Years Ended December 31, 2020 and 2019 B D 2 3 Net sales 2020 $ 686,000 2019 $ 592,000 4 Cost of goods sold 380,000 281,000 5 Gross profit 306,000 311,000 6 Operating expenses 127,000 148,000 7 Income from operations 179,000 163,000 8 Interest expense 30,000 50,000 9 Income before income tax 149,000 113,000 10 Income tax expense 38,000 45,000 11 Net income $111,000 $68,000 12