Comparative financial statement data of Sanfield, Inc. follow SANFELD INC SANFIELD, INC Comparative Income Statement Years Ended December 31, 2018 and 2017 Comparative Bance Sheet December 31, 201s and 2017 a Assets 2018 2017 C A $ 462.000 Net Sales Revenue $ 430,000 Cah Cost of Goods Sold 236,000 213,000 ha pd Gross Profit 226,000 217,000 Operating Expenses Income from Operations Interest Expense 135,000 133.000 ol Cent As ty nd oal A 84,000 91,000 8,000 12.000 72,000 Income Before Income Tax 83,000 sbt Income Tax Espense 18,000 22,000 S 65,000 s0,000 Net Income l t Sckholdens Equity ck Commn S d nd s Selected 2016 1. Market price of Sanfield's common stock: $51.48 at December 31, 2018, and $37.08 at December 31, 2017. 2. Common shares outstanding 16,000 on December 31, 2018 and 15,000 on December 31, 2017 and 2016. 3. All sales are on credit. Requirements 1. Compute the following ratios for 2018 and 2017 a. Curent ratio b. Cash ratio c. Times-interest-eamed ratio d. Inventory tumover e. Gross profit percentage f. Debt to equity ratio g.Rate of retum on common stockholders equity h.Eamings per share of common stock Price/eamings ratio 2. Decide (a) whether Sanfield'ss ability to pay debts and to sell inventory improved or deteriorated during 2018 and (b) whether the investment attractiveness of its common stock appears to have increased or decreased. in the first solution template and then show the 2018 and 2017 calculations and answers in the two columns to the right n Edition REN'S quiren 1. Market price of Sanfield's common stock: $51.48 at December 31,2018, and $37.08 at December 31, 2017. 2. Common shares outstanding: 16,000 on December 31, 2018 and 15,000 on December 31, 2017 and 2016. 3. All sales are on credit Requirements 1. Compute the following ratios for 2018 and 2017: a. Current ratio b. Cash ratio c. Times-interest-earmed ratio d. Inventory tumover e. Gross profit percentage f. Debt to equity ratio g. Rate of retum on common stockholders' equity h. Eamings per share of common stock i. Price/eamings ratio 2. Decide (a) whether Sanfield's ability to pay debts and to sell inventory improved or deteriorated during 2018 and (b) whether the investment attractiveness of its common stock appears to have increased or decreased. Note: Write the applicable formula from the Power Point in the column titled 'Formula' in the first solution template and then show the 2018 and 2017 calculations and answers in the two columns to the right S ACCOUNTING- 12th Eation ement 2 Problem Comparative financial statement data of Sanfield, Inc. follow INC. SANFIELB ee SANFIELD, INC Comparative Income Statement Years Ended December 31, 2018 and 2017 Come December 31, 2018 and 20127 2017 201 2018 Aasets 2017 2018 Current Asets Cash $ 430,000 s 97.000 s saose- $ 462.000 Net Sales Revenue S 100.0004 112,000 s09.000 Accouats Receable ets Cost of Goods Sold 236.000 213.000 142 000 164,000 s g00 207.000- Merchandse Inventory Gross Profit 226,000 217,000 15,000 Prepaid Expenses 135,000 133.000 381.000 Operating Expenses. Total Carerd Assetsu Property, Plant, and fovipment, Net Total Assets 172.000 215.000- 91,000 84,000 Income from Operations 540.000 9.000 s sao,000 8,000 Interest Expense 12.000 83.000 Income Before Income Tax 72,000 Liabiities s 244.000 $ 222.000 Totel Curvens Liabne 18.000 22,000 Income Tax Expense Long term Lities 1m.00 92.000 s 65,000 S S0.000 Net income 335,000- 36,000 total Liabilitios Stockholders' Equity efemed Stock, 4% 92.000 2.000 Common Stackholdery Eity, no par 153,000 132.000 85,0004 560.000 580.000 Tetal Liabitities and Stockholders tquity Selected 2016 amounts Comparative financial statement data of Sanfield, Inc. follow SANFELD INC SANFIELD, INC Comparative Income Statement Years Ended December 31, 2018 and 2017 Comparative Bance Sheet December 31, 201s and 2017 a Assets 2018 2017 C A $ 462.000 Net Sales Revenue $ 430,000 Cah Cost of Goods Sold 236,000 213,000 ha pd Gross Profit 226,000 217,000 Operating Expenses Income from Operations Interest Expense 135,000 133.000 ol Cent As ty nd oal A 84,000 91,000 8,000 12.000 72,000 Income Before Income Tax 83,000 sbt Income Tax Espense 18,000 22,000 S 65,000 s0,000 Net Income l t Sckholdens Equity ck Commn S d nd s Selected 2016 1. Market price of Sanfield's common stock: $51.48 at December 31, 2018, and $37.08 at December 31, 2017. 2. Common shares outstanding 16,000 on December 31, 2018 and 15,000 on December 31, 2017 and 2016. 3. All sales are on credit. Requirements 1. Compute the following ratios for 2018 and 2017 a. Curent ratio b. Cash ratio c. Times-interest-eamed ratio d. Inventory tumover e. Gross profit percentage f. Debt to equity ratio g.Rate of retum on common stockholders equity h.Eamings per share of common stock Price/eamings ratio 2. Decide (a) whether Sanfield'ss ability to pay debts and to sell inventory improved or deteriorated during 2018 and (b) whether the investment attractiveness of its common stock appears to have increased or decreased. in the first solution template and then show the 2018 and 2017 calculations and answers in the two columns to the right n Edition REN'S quiren 1. Market price of Sanfield's common stock: $51.48 at December 31,2018, and $37.08 at December 31, 2017. 2. Common shares outstanding: 16,000 on December 31, 2018 and 15,000 on December 31, 2017 and 2016. 3. All sales are on credit Requirements 1. Compute the following ratios for 2018 and 2017: a. Current ratio b. Cash ratio c. Times-interest-earmed ratio d. Inventory tumover e. Gross profit percentage f. Debt to equity ratio g. Rate of retum on common stockholders' equity h. Eamings per share of common stock i. Price/eamings ratio 2. Decide (a) whether Sanfield's ability to pay debts and to sell inventory improved or deteriorated during 2018 and (b) whether the investment attractiveness of its common stock appears to have increased or decreased. Note: Write the applicable formula from the Power Point in the column titled 'Formula' in the first solution template and then show the 2018 and 2017 calculations and answers in the two columns to the right S ACCOUNTING- 12th Eation ement 2 Problem Comparative financial statement data of Sanfield, Inc. follow INC. SANFIELB ee SANFIELD, INC Comparative Income Statement Years Ended December 31, 2018 and 2017 Come December 31, 2018 and 20127 2017 201 2018 Aasets 2017 2018 Current Asets Cash $ 430,000 s 97.000 s saose- $ 462.000 Net Sales Revenue S 100.0004 112,000 s09.000 Accouats Receable ets Cost of Goods Sold 236.000 213.000 142 000 164,000 s g00 207.000- Merchandse Inventory Gross Profit 226,000 217,000 15,000 Prepaid Expenses 135,000 133.000 381.000 Operating Expenses. Total Carerd Assetsu Property, Plant, and fovipment, Net Total Assets 172.000 215.000- 91,000 84,000 Income from Operations 540.000 9.000 s sao,000 8,000 Interest Expense 12.000 83.000 Income Before Income Tax 72,000 Liabiities s 244.000 $ 222.000 Totel Curvens Liabne 18.000 22,000 Income Tax Expense Long term Lities 1m.00 92.000 s 65,000 S S0.000 Net income 335,000- 36,000 total Liabilitios Stockholders' Equity efemed Stock, 4% 92.000 2.000 Common Stackholdery Eity, no par 153,000 132.000 85,0004 560.000 580.000 Tetal Liabitities and Stockholders tquity Selected 2016 amounts