Using ratios to evaluate a stock investment Comparative financial statement data of Tanfield, Inc., follow: TANFIELD, INC. Comparative Income Statement Years Ended December 31, 2021 and 2020 2021 2020 Netsales $ 460,000 $ 422,000 Cost of goods sold 239,000 212,000 Gross profit $ 221,000 $ 210,000 Operating expenses 138,000 136,000 Income from operations $ 83,000 $ 74,000 Interest expense 13,000 16.000 Income before income tax $ 70,000 $ 58,000 Income tax expense 21,000 Netincome $ 51,000 $ 37,000 19,000 TANFIELD, INC. Comparative Balance Sheet December 31, 2021 and 2020 2021 2020 2019 Current assets Cash $ 91,000 $ 88,000 Current receivables, net 113,000 121,000 $ 106,000 Inventories 144,000 158,000 204,000 Prepaid expenses Total 16,000 3,000 current assets $ 364,000 $ 370,000 Property, plant, and equipment, net 217,000 176,000 Total assets $ 581,000 $546,000 602,000 Total current liabilities $ 227,000 $ 240,000 Long term liabilities 117,000 96,000 Total liabilities $ 344,000 $ 336,000 Preferred stock, 3% 92,000 92,000 Common stockholders' equity, no par 145,000 118,000 89,000 Total liabilities and stockholders' equity $ 581,000 $546,000 "Selected 2019 amounts 1. Market price of Tanfield's common stock: $59.36 at December 31, 2021, and $46.65 at December 31, 2020. 2. Common shares outstanding: 13,000 during 2021 and 11,000 during 2020 and 2019. 3. All sales on credit. Requirements 1. Compute the following ratios for 2021 and 2020: a. Current ratio b. Times-interest-earned ratio c. Inventory turnover d. Gross profit percentage e Debt to equity ratio F. Rate of return on common stockholders' equity g. Earnings per share of common stock h. Pricelearnings ratio 2. Decide (a) whether Tanfield's ability to pay debts and to sell inventory improved or deteriorated during 2021 and (b) whether the investment attractiveness of its common stock appears to have increased or decreased