Comparative financial statement data of Bloomfield Optical Mart follow:

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) Bloomfield€™s financial position improved or deteriorated during 2010
(b) The investment attractiveness of Bloomfield€™s common stock appears to have increased or decreased.
3. How will what you learned in this problem help you evaluate aninvestment?

Bloomfield Optical Mart Comparative Income Statements Years Ended December 31, 2010 and 2009 2010 2009 $690,000 $590,000 Cost of goods sold..375,000 283,000 315,000 307,000 126,000 141,000 Gross prof Operating expenses Income from operations Interest expens36,000 50,000 x...153,000 116,000 40,000 53,000 $113,000 63,000 Income tax expense Net income Bloomfield Optical Mart Comparative Balance Sheets December 31, 2010 and 2009 2010 2008 Current assets: S 38,000 40,000 Current Inventories Prepaid e 217,000 149,000 $140,000 298,000 285,000 181,000 receivables, net 25,000 562,000 499,000 Property, plant, and equipment, net..284,000 276,000 9,000 Total current assets Total assets $846,000 $775.000 710,000 Total current liabilities Long-term liabilities Total liabilities Preferred stockholders' equity, 5%, $10 par Common stockholders' equity, no par Total liabilities and stockholders' equity $281,000 $267,000 241,000 236,000 522,000 503,000 70,000 70,000 254,000 202,000 195,000 $846.000 $775,000