The shares of a company traded on the local stock market and this company is being considered as a potential investment. The comparative financial data for the company is shown below

a. Compute following nine (9) ratios for both years. i. Acid Test ratio ii. Current ratio iii. Times-interest earned ratio iv. Inventory turnover v. Gross profit percentage vi. Debt to equity ratio vii. Rate of return on common stockholders equity viii.Earnings per share of common stock ix. Price/earnings ratio

b. Discuss the attractiveness of the companys common stock from the viewpoint of a potential investor over the past two years.

2020 2019 Inventories Total Current Assets Total Assets Total Current Liabilities Total Liabilities Preferred Stock, 3% Net Sales Gross Profit Income from Operations Interest Expense Income before Income Tax Net Income $ 114,000.00 $ 158,000.00 $ 364,000.00 $ 370,000.00 $ 581,000.00 $ 546,000.00 $ 227,000.00 $ 240,000.00 $ 344,000.00 $ 336,000.00 $ 92,000.00 $ 92,000.00 $ 460,000.00 $ 422,000.00 $ 221,000.00 $ 210,000.00 $ 83,000.00 $ 74,000.00 $ 13,000.00 $ 16,000.00 $ 70,000.00 $ 58,000.00 $ 51,000.00 $ 37,000.00 $ $ Market Price of Common Stock No of outstanding Common Stock 59.36 13,000.00 46.65 11,000.00