Comparative financial statement data for Tanfield, Inc. follow:

TANFIELD, INC.

Comparative Income Statement

Years Ended December 31, 2015 and 2014

2015 2014

Net Sales $460,000 $422,000

Cost of Goods Sold 239,000 212,000

Gross Profit 221,000 210,000

Operating Expenses 138,000 136,000

Income From Operations 83,000 74,000

Interest Expense 13,000 16,000

Income Before Income Tax 70,000 58,000

Income Tax Expense 19,000 21,000

Net Income $51,000 $37,000

TANFIELD, INC.

Comparative Balance Sheet

December 31, 2015 and 2014

2015 2014 2013*

Assets

Current Assets:

Cash $91,000 $88,000

Accounts receivable, Net 113,000 121,000 $106,000

Merchandise inventory 144,000 158,000 204,000

Prepaid expenses 16,000 3,000

Total current assets 364,000 370,000

Property, plant, and equipment, net 217,000 176,000

Total assets $581,000 $546,000 $602,000

Liabilities

Total current liabilities $227,000 240,000

Long-term liabilities 117,000 96,000

Total liabilities $344,000 $336,000

Stockholders Equity

Preferred Stock, 3% $92,000 $92,000

Common Stockholders Equity, no par 145,000 118,000 $89,000

Total Liabilities and Stockholders Equity $581,000 $546,000

1. Market price of Tanfields common stock: $86.58 at December 31, 2015, and $46.54 at December 31, 2014.

2. Common shares outstanding: 12,000 during 2015 and 10,000 during 2014 and 2013.

3. All sales are on credit.

Requirements

1. Compute the following ratios for 2015 and 2014:

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