Requirements

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

Decide $($a$)$ whether Dangerfield'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.

Income Statement

$\backslash$table$[[\backslash$table$[[$Dangerfield$,$ Inc.$],[$Comparative Income Statement$],[$Years Ended December $31,2024$ and $2023]]],[,,2024,2023],[$Net Sales Revenue,$$,461,000$$$,429,000],[$Cost of Goods Sold,,$237,000,218,000],[$Gross Profit,,$224,000,211,000],[$Operating Expenses,,$138,000,136,000],[$Income From Operations,,$86,000,75,000],[$Interest Expense,,$10,000,14,000],[$Income Before Income Tax,,$76,000,61,000],[$Income Tax Expense,,$22,000,23,000],[$Net Income,$$,54,000=$$$,38,000]]$

Balance Sheet

$\backslash$table$[[$Assets$,,,,],[$Current Assets:$],[$Cash$,$$$,92,000$$$,90,000,],[$Accounts Receivables, Net,,$108,000,116,000$$$,101,000],[$Merchandise Inven$$ry$,,144,000,162,000,203,000],[$Prepaid Expenses,,$14,000,8,000,],[$Total Current Assets,,$358,000,376,000,],[$Property$,$ Plant, and Equipment, Net,,$216,000,178,000,],[$Total Assets,$$,574,000S,554,000,$$$596,000$