Other information 1. Market price of Sanfield Optical Mart common stock: $158.61 at December 31, 2018 and $88.74 at December 31, 2017 Comparative financial statement data of Sanfield Optical Mart follow (Click on the icon to view the income statements (Click on the icon to view the bal A Data Table Read the requirements i Data Table Requirement 1. Calculate the ratios Current assets: a. Current ratio Cash $ Select the formula and then enter the decimal plad Current receivables, net 30,000 $ 209,000 300,000 12.000 33,000 153,000 $ 141,000 285,000 189.000 26,000 Inventories 2018 2017 Prepaid expenses Total current assets Sanfield Optical Mart Comparative Income Statements Years Ended December 31, 2018 and 2017 2018 2017 Net sales 5 690,000 5 591,000 376.000 284 000 Cost of goods sold Gross profit 314,000 307.000 Operating expenses 132,000 143,000 Income from operations 182,000 164000 Interest expense 36.000 51.000 Income before income tax 146,000 113,000 Income tax expense 34,000 53,000 $ 112.000 $ 60.000 Net Income Property, plant, and equipment, net 551,000 497,000 290,000 271,000 841 000 $ 768,000 b. Quick (acid-test) ratio $ Select the formula and then enter the Jos to two ded Total assets 708,000 -test) ratio Accounts payable $ 114.000 2018 2017 170,000 $ 137,000 104,000 175,000 Other current liabilties Total current liabilities Long-term liabilities Total liabilities 307.000 245,000 279,000 238,000 c. Receivables turnover and days' sa Begin by selecting the formula and t the ratios to Print Done mover Common stockholders' equity, no par 552,000 517,000 289,000 251,000 $ 841,000 5 768,000 192,000 2018 Total liabilities and stockholders' equity Selected 2016 amounts. Choose from any list or enter any number in the input fields and then continue to the next question. Comparative financial statement data of Sanfield Optical Mart follow: (Click on the icon to view the income statements.) (Click on the icon to view the balance sheets.) Read the requirements Other Information: 1. Market price of Sanfield Optical Mert common stock: 5158.61 at December 31, 2018, and $88.74 at December 31, 2017 2. Common shares outstanding: 12,000 during 2018 and 11.500 during 2017 3. All sales on credit 4 Cash dividends paid per share: $0.70 in 2018 and $0.40 in 2017 Requirement 1. Calculate the ratios for 2018 and 2017. (Abbreviations used Avg = average and /= outstanding) a. Current ratio Select the formula and then enter the amounts to calculate the current ratio for 2018 and 2017. (Round the ratios to two decimal places, X.XX.) = Current ratio | 2018 2017 b. Quick (acid-test) ratio Select the formula and then enter the amounts to calculate the quick (acid-test) ratio for 2018 and 2017. (Round the ratios to two decimal places, X.XX.) - Quick (acid-test) ratio 2018 2017 ( c. Receivables turnover and days' sales oustanding (DSO)-round to the nearest whole day Begin by selecting the formula and then enter the amounts to calculate receivables turnover for 2018 and 2017. (Round the ratios to two decimal places, X.XX.) = Accounts receivable turnover 2018 2017 Now select the formula and enter the amounts to calculate days' sales oustanding (DSO) (round to the nearest whole day) (Enter formula ratios to two decimal places, X.XX. Use a 365-day year and round the DSO to the nearest whole day, X) = Days' sales outstanding (DSO) 2018 2017 | d. Inventory turnover and days'inventory outanding (DIO)-round to the nearest whole day Begin by selecting the formula and then enter the amounts to calculate the inventory turnover for 2018 and 2017. (Round the ratios to two decimal places, X.XX.) = Inventory tumover 2018 2017 Now select the formula and enter the amounts to calculate days' inventory outanding (DIO) (round to the nearest whole day). (Enter formula ratios to two decimal places, XXX. Use a 365-day year and round the DIO to the nearest whole day, X.) = Days' inventory outstanding (DIO) 2018 2017 e. Accounts payable turnover and days' payable outstanding (DPO)Use cost of goods sold in the numerator of the turnover ratio and round DPO to the nearest whole day Begin by selecting the formula and then enter the amounts to calculate the accounts payable turnover for 2018 and 2017. (Round the ratios to two decimal places. XXX.) = Accounts payable turnover 2018 2017 Now select the formula and enter the amounts to calculate days' payable outanding (DPO) (round to the nearest whole day). (Enter formula ratios to two decimal places, X.XX. Use a 365-day year and round the DPO to the nearest whole day. X.) = Days payable outstanding (DPO) 2018 2017 f. Cash conversion cycle in days) = Cash conversion cycle 2018 2017 + + 9. Times-interest-barned ratio Select the formula and then enter the amounts to calculate the times-interest-Barned ratio for 2018 and 2017. (Round the ratios to one decimal place, XX) = Times-interest-earned ratio / 2018 2017 h. Return on assets-use DuPont Analysis Select the formula and then enter the amounts to calculate the return on assets (ROA) for 2018 and 2017. (Round percentages to the nearest one-tenth percent, XX%, and other component ratios to three decimal places, XXX. Ignore interest expense in your analysis.) ROA 2018 2017 i. Return on common stockholders' equity-use DuPont Analysis Select the formula and then enter the amounts to calculate the return on common stockholders' equity (ROE) for 2018 and 2017. (Round percentages to the nearest one-tenth percent. X.X% and other component ratios to three decimal places, XOOX. Ignore interest expense in your analysis.) = ROE 2018 2017 j. Earnings per share of common stock Select the formula and then enter the amounts to calculate earnings per share (EPS) for 2018 and 2017. (Complete all answer boxes. For zero amounts, enter in the appropriate cell. Round EPS to the nearest cent. X.XX.) = EPS 2018 (L 2017 ( k. Price-earnings ratio Select the formula and then enter the amounts to calculate the price-earnings (P/E) ratio for 2018 and 2017 (Enter formula amounts to two decimal places, XXX Round the P/E ratios to one decimal place, XX, as needed) = P/E ratio 2018 2017 Requirement 2. a. Decide whether Sanfield Optical Mart's financial position improved or deteriorated during 2018 The company's financial position during 2018 as shown by the in the Requirement 2. b. Decide whether the investment attractiveness of the company's common stock appears to have increased or decreased from 2017 to 2018 The common stock's attractiveness during 2016, as shown by the in the The price-earnings ratio Requirement 3. How will what you learned in this problem help you evaluate an investment? By analyzing the two-year trends in the ratios, you can see whether the company's abilities to This problem gives you practice in computing and evaluating several of the ratios used in have improved or deteriorated during this period. ratio values generally indicate an attractive investment, and ratio values usually signal an unattractive investment