Requirements 1. Compute the following ratios for 2018 and 2017: 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. Pricelearnings ratio 2. Decide (a) whether Tanfield's ability to pay debts and to sell inventory improved or deteriorated during 2018 and (b) whether the investment attractiveness of its common stock appears to have increased or decreased. Print Done * Additional Financial Information 1. Market price of Tanfield's common stock: $113.04 at December 31, 2018, and $42.60 at December 31, 2017. 2. Common shares outstanding: 9,000 on December 31, 2018 and 8,000 on December 31, 2017 and 2016. 3. All sales are on credit. Print Done i Balance Sheet December 31, 2018 and 2017 2018 2017 2016* Assets Current Assets: Cash $ Accounts Receivables, Net Merchandise Inventory 92,000 $ 114,000 143,000 14,000 91,000 118,000 $ 107,000 161,000 204,000 7,000 Prepaid Expenses Total Current Assets Property, Plant, and Equipment, Net 363,000 216,000 579,000 $ 377,000 179,000 556,000 $ $598,000 Total Assets Liabilities Total Current Liabilities Long-term Liabilities $ 228,000 $ 118,000 247,000 100,000 Total Liabilities 346,000 347,000 Stockholders' Equity Preferred Stock, 6% 110,000 110,000 123,000 Common Stockholders' Equity, no par 91,000 $ 579,000 $ 556,000 Total Liabilities and Stockholders' Equity * Selected 2016 amounts Print Done i Income Statement Tanfield, Inc. Comparative Income Statement Years Ended December 31, 2018 and 2017 2017 Net Sales Revenue $ 467,000 $ 426,000 234,000 216,000 Cost of Goods Sold Gross Profit Operating Expenses Income From Operations 233,000 138,000 210,000 136,000 95,000 13,000 74,000 14,000 Interest Expense Income Before Income Tax Income Tax Expense 82,000 22,000 60,000 $ 60,000 25,000 35,000 $ Net Income Print Done