FOR HOMEWORK SUBMISSION: Problem P18-5 (40-50 minutes), p.772-773 Using ratios to evaluate a share investment The comparative financial statement data of Danfield Ltd follows: Additional Information 1. Market price of Danfield's ordinary shares: $86.58 at 31 December 2016, and $46.54 at 31 December 2015 2. Ordinary shares outstanding: 12,000 during 2016, and 10,000 during 2015 and 2014 3. All sales are on credit Income 2016 2015 Net sales Cost of Sales Gross Profit Selling and General expenses 136,000 Interest expense Profit before income tax 85,000 S Income tax expense Profit 467,000S 428,000 237,000 218.000 230,000 210000 134,000 10,000 66,000 24,000 27,000 S 61,000 $ 39,000 9,000 Balance Sheet 2016 2015 2014 Current assets: Cash Current receivables, net S 97,000S 95,000 112,000 118,000 102,000 145,000 163,000 203,000 Prepaid expenses 12,000 366,000 381,000 211,000 179,000 Total current assets Property, plant and equipment, net Total assets Total current liabalities Non-current liabilities S 577,000S 560,0005 598,000 225,000 246,000 114,000 97000