Comparative financial statement data of Rourke Optical Mart follow: Other information: 1. Market price of Rourke common
Question:
Comparative financial statement data of Rourke Optical Mart follow:
Other information:
1. Market price of Rourke common stock: $78.12 at December 31, 2010, and $59.10 at December 31, 2009.
2. Common shares outstanding: 19,000 during 2010 and 17,000 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 common stockholders equity
e. Earnings per share of common stock
f. Price/earnings ratio
2. Decide whether
(a) Rourkes financial position improved or deteriorated during 2010
(b) The investment attractiveness of Rourkes common stock appears to have increased or decreased.
3. How will what you learned in this problem help you evaluate aninvestment?
Step by Step Answer:
Financial accounting
ISBN: 978-0136108863
8th Edition
Authors: Walter T. Harrison, Charles T. Horngren, William Bill Thomas