Comparative financial statement data of Danfield, Inc., follow: (Click the loon to view the income statements.) (Click the icon to view the balance sheets.) 1. 2 Market price of Danfield's common stock: $47.88 at December 31, 2020, and $31.35 at December 31, 2019 Common shares outstanding: 10,000,000 during 2020 and 10,000,000 during 2019 3. All sales are credit sales Income statements - X A B C Read the requirements 1 Danfield, Inc. 2 Comparative Income Statements 3 For the Years Ended December 31, 2020 and 2019 Requirement 1. Compute the following ratios for 2020 and 2019. (Round all ratios to two decimal places.) 4 (amounts in thousands) 2020 2019 5 2020 2019 a. Current ratio 6 Sales revenues S 452,300 S 425,390 2020 2019 b. Times-interest-earned ratio 2020 2019 7 Less: Cost of goods sold 238,000 222,000 8 Gross profit S 214,300 $ 203,390 9 Less: Operating expenses 138,000 132,000 10 Operating income S 78,300 S 71,390 c. Inventory turnover 11 Less: Interest expense 10,800 11,800 2020 2019 12 Income before Income taxes S 67,500 S 59,500 d. Operating income percentage 13 Less: Income tax expense 20,700 21,790 14 Net Income S 48,800 $ 37,800 2020 2019 e. Return on common stockholders' equity 2020 2019 f. Earnings per share of common stock 2020 2019 g. Price/earnings ratio Print Done Requirement 2. Decide (a) whether Darfield's ability to pay debts and to sell inventory improved or deteriorated during 2020 and (b) whether the investment attractiveness of its common stock appears to have increased or decreased. a. Danfield's ability to pay its debts and to sell inventory during 2020. b. The investment attractiveness of Danfald's common stock appears to have