Comparative financial statement data of Hamden Optical Mart follow;

{Other information:}
1. Market price of Hamden common shares: \(\$ 102.17\) at December 31,2020 ; and \(\$ 77.01\) at December 31, 2019 2. Average common shares outstanding: 18,000 during 2020 and 17,500 during 2019 3. All sales on credit {Requirements}
1. Compute the following ratios for 2020 and 2019

a. Current ratio

b. Quick (acid-test) ratio

c. Receivables turnover and days' sales outstanding (DSO) (round to the nearest whole day)

d. Inventory turnover and days' inventory outstanding (DIO) (round to the nearest whole day)

e. Accounts payable turnover and days' payable outstanding (DPO) (round to the nearest whole day)

f. Cash conversion cycle (in days)
g. Times-interest-earned ratio h. Return on assets i. Return on common shareholders' equity j. Earnings per share of common shares k. Price/earnings ratio 2. Decide whether

(a) Hamden's financial position improved or deteriorated during 2020 and

(b) the investment attractiveness of Hamden's common shares appears to have increased or decreased.
3. How will what you learned in this problem help you evaluate an investment?

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1 A Hamden Optical Mart Comparative Income Statement Years Ended December 31, 2020 and 2019 2 3 Net sales 4 Cost of goods sold 5 Gross profit 6 Operating expenses 7 Income from operations 8 Interest expense 9 Income before income tax 10 Income tax expense 11 Net income 12 B C D 2020 $ 687,000 2019 $ 595,000 375,000 276,000 312,000 319,000 129,000 142,000 183,000 177,000 37,000 45,000 146,000 132,000 36,000 51,000 $110,000 $ 81,000