Comparative financial statement data of Tanfield, Inc., follow:

1. Market price of Tanfield€™s common stock: $ 47.67 at December 31, 2014, and $ 27.84 at December 31, 2013
2. Common shares outstanding: 11,000 during 2014 and 11,000 during 2013
3. All sales are credit sales

Requirements
1. Compute the following ratios for 2014 and 2013:
a. Current ratio
b. Times- interest- earned ratio
c. Inventory turnover
d. Return on common stockholders€™ equity
e. Earnings per share of common stock
f. Price/ earnings ratio
2. Decide
(a) Whether Tanfield€™s ability to pay debts and to sell inventory improved or deteriorated during 2014 and
(b) Whether the investment attractiveness of its common stock appears to have increased ordecreased.

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Tanfield, Inc. Comparative income Statement For the Years Ended December 31, 2014 and 2013 (amounts in thousands) 2014 2013 6 Sales revenues 7Less: Cost of goods sold 8 Gross pront 9 Less:Operating expenses 10 Operating income 11 Less: Interest expense 12 Income before income taxes 13 Less: Income tax expense 14 Net income 15 S453,000 427,500 242,000 220,000 211,000207500 130,000 7500 2,500 65,000 27,850 137,000 10,000 64,000 5 12,550 1 一 Tanfield, Inc. Comparative Balance Sheets December 31, 2014 and 2013 (amounts in thousands) 2013 2012 2014 Assets 7 Current assets 8 Cash 9 Accounts receivable 10 I Inventory 11 Prepaid expenses 12 Total current assets $ 95,000$ 96 111,500140,000 102000 138,000 7,000 137 000 214,000 355 500 S381,000 204,000 559.500S 13 Property,plant,and equipment, net 14 Total assets 15 16 17 Current liabilities 18 Long-term liabilities 19 Total liabilities 20 21 22 | Preferred stock, 5% 23 Total common stockholders' equity 24 Total stockholders' equity 25 26 Total liabilities and equity 27 176,000 557,000 labilities s 225,000 s 254,000 46,000 101 500 326,500 S300,000 105,000S105,000 233000S 257,000 Stockholders' equity 152,000 S