1. Market price of Hanfield's common stock: $70.20 at December 31, 2024, and $34.72 at December 31, 2023. 2. Common shares outstanding: 13,000 on December 31, 2024 and 12,000 on December 31, 2023 and 2022. 3. All sales are on credit. Income statement Hanfield, Inc. Comparative Income Statement Years Ended December 31, 2024 and 2023 2024 2023 Net Sales Revenue $ 458,000 $ 426,000 234,000 217,000 Cost of Goods Sold Gross Profit 224,000 138,000 209,000 136,000 Operating Expenses Income From Operations 86,000 73,000 Interest Expense 13,000 14,000 Income Before Income Tax 73,000 59,000 Income Tax Expense 19,000 24,000 $ 54,000 $ 35,000 Net Income Balance sheet Hanfield, Inc. Comparative Balance Sheet December 31, 2024 and 2023 2024 2023 2022* Assets Current Assets: Cash $ 98,000 $ 95,000 Accounts Receivables, Net 113,000 119,000 $ 144,000 158,000 208,000 Merchandise Inventory Prepaid Expenses 12,000 8,000 Total Current Assets 367,000 380,000 220,000 178,000 Property, Plant, and Equipment, Net $ 587,000 $ 558,000 Total Assets $596,000 Liabilities Total Current Liabilities $ 227,000 $ 245,000 114,000 93,000 Long-term Liabilities Total Liabilities 341,000 338,000 Stockholders' Equity Preferred Stock, 5% 104,000 142,000 104,000 116,000 Common Stockholders' Equity, no par 87,000 $ 587,000 $ 558,000 Total Liabilities and Stockholders' Equity * Selected 2022 amounts - 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. Pricelearnings ratio 2. Decide (a) whether Hanfield'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. Requirement 1a. Compute the current ratios for 2024 and 2023. Begin by selecting the formula to compute the current ratio. Current ratio = Now, compute the current ratios for 2024 and 2023. (Round your answers to two decimal places, X.XX.) Current ratio 2024 2023 Requirement 1b. Compute the cash ratios for 2024 and 2023. Begin by selecting the formula to compute the cash ratio. Cash ratio - Now, compute the cash ratios for 2024 and 2023. (Round your answers to two decimal places, X.XX.) Cash ratio 2024 2023 Requirement 1c. Compute the times-interest-earned ratios for 2024 and 2023. Begin by selecting the formula to compute the times-interest-earned ratio. Times-interest-earned ratio Now, compute the times-interest-earned ratios for 2024 and 2023. (Round your answers to two decimal places, X.XX.) Times-interest-earned ratio 2024 2023 Requirement 1d. Compute the inventory turnover ratios for 2024 and 2023. Begin by selecting the formula to compute the inventory turnover ratio. Inventory turnover ratio = Now, compute the inventory turnover ratios for 2024 and 2023. (Round your answers to two decimal places, X.XX.) Inventory turnover ratio 2024 2023 Requirement 1e. Compute the gross profit percentage for 2024 and 2023. Begin by selecting the formula to compute the gross profit percentage. Gross profit percentage = Now, compute the gross profit percentage for 2024 and 2023. (Round your answers to one tenth of a percent, X.X. Do not enter the %. For example, enter 10.2% as 10.2.) Gross profit % 2024 % 2023 % Requirement 1. Compute the debt to equity ratios for 2024 and 2023. Begin by selecting the formula to compute the debt to equity ratio. Debt to equity ratio Now, compute the debt to equity ratios for 2024 and 2023. (Round your answers to two decimal places, X.XX.) Debt to equity ratio 2024 2023 Requirement 1g. Compute the rate of return on common stockholders' equity for 2024 and 2023. Begin by selecting the formula to compute the rate of return on common stockholders' equity. Rate of return on common stockholders' equity Now, compute the rate of return on common stockholders' equity for 2024 and 2023. (Round your answers to one tenth of a percent, X.X. Do not enter the %. For example, enter 10.2% as 10.2.) Rate of return on common stockholders' equity % 2024 % 2023 % Requirement 1h. Compute the earnings per share of common stock for 2024 and 2023. Begin by selecting the formula to compute the earnings per share of common stock. Earnings per share = Now, compute the earnings per share for 2024 and 2023. (Round your answers to the nearest cent, $X.XX.) Earnings per share of common stock 2024 2023 Requirement 1i. Compute the pricelearnings ratio for 2024 and 2023. Begin by selecting the formula to compute the pricelearnings ratio. Pricelearnings ratio Now, compute the pricelearnings ratio for 2024 and 2023. (Round your interim calculations and final answers to two decimal places, X.XX.) Pricelearnings ratio 2024 2023 Requirement 2. Decide (a) whether Hanfield'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. (a) Did Hanfield's ability to pay its debts and to sell inventory improve or deteriorate during 2024? (b) Did the investment attractiveness of Hanfield's common stock appear to have increased or decreased
