Comparative financial statement data of Bloomfield Optical Mart follow:

Other information:
1. Market price of Bloomfield common stock: $82.20 at December 31, 2010, and $52.96 at December 31, 2009.
2. Common shares outstanding: 20,000 during 2010 and 18,000 during 2009.
3. All sales on credit.

Requirements
1. Compute the following ratios for 2010 and 2009:
a. Current ratio
b. Inventory turnover
c. Times-interest-earned ratio
d. Return on assets
e. Return on common stockholders equity
f. Earnings per share of common stock
g. Price/earnings ratio
2. Decide whether
(a) Bloomfield€™s financial position improved or deteriorated during 2010
(b) The investment attractiveness of Bloomfield€™s common stock appears to have increased or decreased.
3. How will what you learned in this problem help you evaluate aninvestment?

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Bloomfield Optical Mart Comparative Income Statements Years Ended December 31, 2010 and 2009 2010 2009 $690,000 $590,000 Cost of goods sold..375,000 283,000 315,000 307,000 126,000 141,000 Gross prof Operating expenses Income from operations Interest expens36,000 50,000 x...153,000 116,000 40,000 53,000 $113,000 63,000 Income tax expense Net income Bloomfield Optical Mart Comparative Balance Sheets December 31, 2010 and 2009 2010 2008 Current assets: S 38,000 40,000 Current Inventories Prepaid e 217,000 149,000 $140,000 298,000 285,000 181,000 receivables, net 25,000 562,000 499,000 Property, plant, and equipment, net..284,000 276,000 9,000 Total current assets Total assets $846,000 $775.000 710,000 Total current liabilities Long-term liabilities Total liabilities Preferred stockholders' equity, 5%, $10 par Common stockholders' equity, no par Total liabilities and stockholders' equity $281,000 $267,000 241,000 236,000 522,000 503,000 70,000 70,000 254,000 202,000 195,000 $846.000 $775,000