Compute four ratios that measure Caulfield Industries' ability to earn profits. The company's comparative income statement follows. The data for 2012 are given as needed.

Did the company's operating performance improve or deteriorate during2014?

Transcribed Image Text:

Caulfieid Industries Income Statement For the Years Ended December 31, 2014 and 2013 (amounts in thousands) 2014 2013 2012 6 Sales revenues 7 Less: Cost of goods sold 8 Gross profit 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 16 14005182 91O 96,000 10640085,910 105,000 53,000 53 400 S 5,385 40,910 5 48,015 34,451 16 160 18291 22,647 Additional data: 17 Total assets 18 Common stockholders' equity 19 Preferred dividends 20 Common shares outstanding during the year 21 207,000 101,000 95,000 180,000 61,110 92,000 S 2,980 2,980 $ 27·985 27985 26,000