= Homework: Chapter 15 Homework Question 2, PF15-27A (b. Part 1 of 20 HW Score: 25%, 2.5 of 10 points O Points: 0 of 5 Save (Click the icon to view the additional financial information.) Comparative financial statement data of Sanfield, Inc. follow: (Click the icon to view the income statement.) (Click the icon to view the balance sheet.) Read the requirements CE Requirement 1a. Compute the current ratios for 2024 and 2023. Additional financial information Begin by selecting the formula to compute the current ratio. Current ratio - X 1. Market price of Sanfield's common stock $51.48 at December 31, 2024, and $37.08 at December 31, 2023 2. Common shares outstanding: 16,000 on December 31, 2024 and 15,000 on December 31, 2023 and 2022. 3. All sales are on credit. Balance sheet Print Done Sanfield, Inc. Comparative Balance Sheet December 31, 2024 and 2023 2024 2023 2022 Assets Income statement Current Assets Cash $ 99,000 $ 97,000 Requirements Accounts Receivables, Net 117,000 $ 100,000 Merchandise Inventory 109,000 142.000 15,000 164,000 207,000 5,000 Sanfield, Inc. Comparative Income Statement Years Ended December 31, 2024 and 2023 2024 2023 Prepaid Expenses Total Current Assets 383.000 365.000 215.000 177,000 Net Sales Revenue Property, Plant, and Equipment, Net $ 462,000 $ 430,000 236,000 213,000 $ 580,000 $ 560,000 Total Assets $599,000 Cost of Goods Sold Gross Profit 1. Compute the following ratios for 2024 and 2023: 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 2. Decide (a) whether Sanfield's ability to pay debts and to sell inventory improved or deteriorated during 2024 and (b) whether the investment attractiveness of its common stock appears to have increased or decreased. Liabilities 226,000 135,000 217,000 133,000 Operating Expenses Total Current Liabilities $ 222,000 $ 113,000 244,000 92,000 Income From Operations 84,000 Long-term Liabilities Total Liabilities 91,000 8,000 Interest Expense 12,000 335,000 336,000 Income Before Income Tax 72,000 83,000 18,000 Income Tax Expense 22,000 Stockholders' Equity 65,000 $ 50,000 Print Done Preferred Stock, 4% Net Income 92,000 153,000 92,000 132,000 Common Stockholders' Equity, no par 85,000 $ 580,000 $ 560,000 Total Liabilities and Stockholders' Equity * Selected 2022 amounts Print Done Clear all Check
