Exercise 6 Companies, a home improvement store chain, reported the following summarized figures: DANFIELD, INC. Income Statement Years Ended December 31, 2019 and 2018 2019 Net Sales $ 467,000 $ Cost of Goods Sold 237,000 $ Gross Profit 230,000 Operating Expenses 136,000 Income From Opetations 94,000 Interest Expense 9,000 Income Before Income Tax $ 85,000 $ Income Tax Expense $ 24,000 $ Net Income 61,000 2018 428,000 218,000 210,000 134,000 76,000 10,000 66,000 27.000 39,000 DANFIELD, INC. Balance Sheet December 31, 2019 and 2018 2019 2018 Liabilities 97,000 95,000 Total Current Liabilities Long-term Liabilities 112,000 118,000 Total Liabilities 145,000 163,000 12,000 5,000 Stockholders' Equity 366,000 381,000 Preffered Stock, 3% 211,000 179,000 Common Stockholders' Equity 577,000 560.000 Total Liabilities an Equity 2019 225,000 114,000 339,000 Assets Cash Short-term Investments Accounts Receivable, Net Merchandise Inventory Prepaid Expenses Total Current Assets Property, Plant and Equipment, Net Total Assets 2018 246,000 97,000 343,000 108,000 130,000 577,000 108,000 109,000 560,000 DANFIELD has 50,000 common shares outstanding during 2019. inventory turnover may mean either a weak sales team performance Requirement 6 Debt ratio Debt to equity ratio Requirement 7 Requirement 8 Profit margin ratio Requirement 9 Rate of return on total assets = Requirement 10 Asset turnover ratio Requirement 11 Rate of return on common stockholders' equity Requirement 12 Requirement 13 Earnings per share /share Requirement 14 Price/earnings ratio Requirement 15