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Part 1

Requirement 1a. Compute the current ratios for

2024

and

2023.

Begin by selecting the formula to compute the current ratio.

Current ratio

=

Total current assets Total current liabilities

Part 2

Now,

compute

the current ratios for

2024

and

2023.

(Round your answers to two decimal places, X.XX.)

	Current ratio
2024	1.61
2023	1.57

Part 3

Requirement 1b. Compute the cash ratios for

2024

and

2023.

Begin by selecting the formula to compute the cash ratio.

Cash ratio

=

(Cash + Cash equivalents) Total current liabilities

Part 4

Now,

compute

the cash ratios for

2024

and

2023.

(Round your answers to two decimal places, X.XX.)

	Cash ratio
2024	0.41
2023	0.38

Part 5

Requirement 1c. Compute the times-interest-earned ratios for

2024

and

2023.

Begin by selecting the formula to compute the times-interest-earned ratio.

Times-interest-earned ratio

=

(Net Income + Income tax expense + Interest expense) Interest expense

Part 6

Now,

compute

the times-interest-earned ratios for

2024

and

2023.

(Round your answers to two decimal places, X.XX.)

	Times-interest-earned ratio
2024	8.67
2023

Part 1

Requirement 1a. Compute the current ratios for

2024

and

2023.

Begin by selecting the formula to compute the current ratio.

Current ratio

=

Total current assets Total current liabilities

Part 2

Now,

compute

the current ratios for

2024

and

2023.

(Round your answers to two decimal places, X.XX.)

	Current ratio
2024	1.61
2023	1.57

Part 3

Requirement 1b. Compute the cash ratios for

2024

and

2023.

Begin by selecting the formula to compute the cash ratio.

Cash ratio

=

(Cash + Cash equivalents) Total current liabilities

Part 4

Now,

compute

the cash ratios for

2024

and

2023.

(Round your answers to two decimal places, X.XX.)

	Cash ratio
2024	0.41
2023	0.38

Part 5

Requirement 1c. Compute the times-interest-earned ratios for

2024

and

2023.

Begin by selecting the formula to compute the times-interest-earned ratio.

Times-interest-earned ratio

=

(Net Income + Income tax expense + Interest expense) Interest expense

Part 6

Now,

compute

the times-interest-earned ratios for

2024

and

2023.

(Round your answers to two decimal places, X.XX.)

	Times-interest-earned ratio
2024	8.67
2023

Part 7

Requirement 1d. Compute the inventory turnover ratios for

2024

and

2023.

Begin by selecting the formula to compute the inventory turnover ratio.

Inventory turnover ratio

=

Cost of goods sold Average merchandise inventory

Part 8

Now,

compute

the inventory turnover ratios for

2024

and

2023.

(Round your answers to two decimal places, X.XX.)

	Inventory turnover ratio
2024	1.67
2023	1.33

Part 9

Requirement 1e. Compute the gross profit percentage for

2024

and

2023.

Begin by selecting the formula to compute the gross profit percentage.

Gross profit percentage

=

Gross profit Net sales revenue

Part 10

Now,

compute

the gross profit percentage for

2024

and

2023.

(Round your answers to one tenth of a percent, X.X. Do not enter the %. For example, enter 10.2% as 10.2.)

	Gross profit %
2024	0.47	%
2023	0.49	%

Part 11

Requirement 1f. Compute the debt to equity ratios for

2024

and

2023.

Begin by selecting the formula to compute the debt to equity ratio.

Debt to equity ratio

=

Total liabilities Total equity

Part 12

Now,

compute

the debt to equity ratios for

2024

and

2023.

(Round your answers to two decimal places, X.XX.)

	Debt to equity ratio
2024
2023

Part 13

Requirement 1g. Compute the rate of return on common stockholders' equity for

2024

and

2023.

Begin by selecting the formula to compute the rate of return on common stockholders' equity.

Rate of return on common
stockholders' equity	=

Part 14

Now,

compute

the rate of return on common stockholders' equity for

2024

and

2023.

(Round your answers to one tenth of a percent, X.X. Do not enter the %. For example, enter 10.2% as 10.2.)

	Rate of return on common stockholders' equity %
2024		%
2023		%

Part 15

Requirement 1h. Compute the earnings per share of common stock for

2024

and

2023.

Begin by selecting the formula to compute the earnings per share of common stock.

Earnings per share

=

Part 16

Now,

compute

the earnings per share for

2024

and

2023.

(Round your answers to the nearest cent, $X.XX.)

	Earnings per share of common stock
2024
2023

Part 17

Requirement 1i. Compute the price/earnings ratio for

2024

and

2023.

Begin by selecting the formula to compute the price/earnings ratio.

Price/earnings ratio

=

Part 18

Now,

compute

the price/earnings ratio for

2024

and

2023.

(Round your interim calculations and final answers to two decimal places, X.XX.)

	Price/earnings ratio
2024
2023

Part 19

Requirement 2. Decide (a) whether

Banfield'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.(a) Did

Banfield's

ability to pay its debts and to sell inventory improve or deteriorate during

2024?

deteriorate

improve

Part 20

(b) Did the investment attractiveness of

Banfield's

common stock appear to have increased or decreased?

decreased

increased