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P18-5B Comparative financial statement data of Avenger Hardware Ltd. are as follows: Usir shat AVENGER HARDWARE LTD. Income Statement For the Years Ended December 31,

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P18-5B Comparative financial statement data of Avenger Hardware Ltd. are as follows: Usir shat AVENGER HARDWARE LTD. Income Statement For the Years Ended December 31, 2020 and 2019 2020 2019 Net sales $351,500 $310,000 Cost of goods sold 201,000 155,000 Gross margin 150,500 155,000 Operating expenses 65,000 71,000 Income from operations 85,500 84,000 Interest expense 26,000 20,000 Income before income tax 59,500 64,000 Income tax expense 19,000 22,500 $ 41,500 Net income $ 40,500 AVENGER HARDWARE LTD. Balance Sheet December 31, 2020 and 2019 2020 2018 2019 (selected 2018 given to computation ratios) $ 62.500 86,000 Current assets Cash Current receivables, net Inventories Prepaid expenses Total current assets Property, plant, and equipment net Total assets Total current abilities Long-term liabilities Total liabilities Preferred shares. $1.50 Common shares Retained earnings Total liabilities and shareholders' equity 351,500 $ 21,000 116.000 149,000 6,000 292.000 154.500 5446,500 $141.000 114,500 255.500 30,000 75,000 86,000 5446,500 $ 25,000 80.500 137.000 9.000 251,500 143.500 $395.000 $138.500 121,000 259,500 30,000 60,000 45,500 $395,000 60,000 19,000 Other information Market price of Avenger Hardware Ltd. common shares: $19.00 at December 31, 2020, and $31.00 at December 31, 2019. Weighted average number of common shares outstanding: 15,000 during 2020 and 12,000 during 2019. There are 2.000 preferred shares outstanding. Dividends were declared each year All sales are on credit. Required 1. Compute the following ratios for 2020 and 2019, rounding all answers to two decimal places: a. Current ratio b. Inventory tumover c. Accounts receivable turnover d. Debt/equity ratio e. Times-interest-earned ratio f. Return on assets 8. Return on common shareholders' equity h. Earnings per common share 1. Price-earnings ratio 1. Book value per common share at year end 2. Decide (a) whether Avenger Hardware Ltd.'s ability to pay its debts and to sell inventory improved or deteriorated during 2020 and (b) whether the investment attractiveness of its common shares appears to have increased or decreased P18-R Incomplete andada

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