Comparative financial statement data of Avenger Hardware Ltd. are as follows:

Other information:
€¢ Market price of Avenger Hardware Ltd. common shares: $19.00 at December 31, 2017, and $31.00 at December 31, 2016.
€¢ Weighted-average number of common shares outstanding: 15,000 during 2017 and 12,000 during 2016.
€¢ There are 2,000 preferred shares outstanding.
€¢ All sales are on credit.
Required
1. Compute the following ratios for 2017 and 2016:
a. Current ratio
b. Inventory turnover
c. Accounts receivable turnover
d. Times-interest-earned ratio
e. Return on assets
f. Return on common shareholders' equity
g. Earnings per common share
h. Price-earnings ratio
i. Book value per common share at year end
2. Decide
(a) Whether Avenger Hardware Ltd.'s ability to pay its debts and to sell inventory improved or deteriorated during 2017 and
(b) Whether the investment attractiveness of its common shares appears to have increased or decreased.
3. How will what you have learned in this problem help you evaluate an investment?

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AVENGER HARDWARE LTD Income Statement For the Years Ended December 31,2017 and 2016 2017 2016 Net sales Cost of goods sold Gross margin Operating expenses Income from operations Interest expense Income before income tax Income tax expense Net income $351,500 201,000 150,500 65,000 85,500 26,000 59,500 19,000 $ 40,500 $310,000 155,000 155,000 71,000 84,000 20,000 64,000 22,500 $41,500 AVENGER HARDWARE LTD Balance Sheet December 31,2017 and 2016 (selected 2015 amounts given for computation of ratios) 2017 2016 2015 Current assets: Cash $21,000 $25,000 Current receivables, net 116,000 149,000 6,000 80,500 $ 62,500 86,000 Inventories 137,000 9,000 292,000 251,500 54,500143,500 $446,500 $395,000 $141,000 $138,500 121,000 255,500 259,500 30,000 60,000 45,500 $446,500 $395,000 Prepaid expenses Total current assets Property, plant, and equipment, net Total assets Total current liabilities Long-term liabilities 351,500 114,500 Total liabilities Preferred shares, $1.50 Common shares Retained earnings Total liabilities and shareholders' equity 30,000 75,000 86,000 60,000 19,000