Comparative financial statement data of Bloomfield Optical Mart follow: Other information: 1. Market price of Bloomfield common
Question:
Other information:
1. Market price of Bloomfield common stock: $82.20 at December 31, 2010, and $52.96 at December 31, 2009.
2. Common shares outstanding: 20,000 during 2010 and 18,000 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 assets
e. Return on common stockholders equity
f. Earnings per share of common stock
g. Price/earnings ratio
2. Decide whether
(a) Bloomfields financial position improved or deteriorated during 2010
(b) The investment attractiveness of Bloomfields 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