Comparative financial statement data of Danfield, Inc. follow:

1. Market price of Danfield's common stock: $ 86.58 at December 31, 2015, and $ 46.54 at December 31, 2014.

2. Common shares outstanding: 12,000 during 2015 and 10,000 during 2014 and 2013.

3. All sales are on credit.

Requirements

1. Compute the following ratios for 2015 and 2014:

a. Current ratio

b. Cash ratio

c. Times-interest-earned ratio

d. Inventory turnover

e. Gross profit percentage

f. Debt to equity ratio

g. Rate of return on common stockholders' equity

h. Earnings per share of common stock

i. Price/earnings ratio

2. Decide

(a) Whether Danfield's ability to pay debts and to sell inventory ­improved or deteriorated during 2015

(b) Whether the investment ­attractiveness of its common stock appears to have increased or decreased.

DANFIELD, INC Comparative Income Statement Years Ended December 31, 2015 and 2014 2015 2014 Not Sales Cost of Goods Sold Gross Profit Operating Expenses Income From Operations Interest Expense Income Before Income Tax Income Tax Expense Net Income 467,000 428,000 237.000 218,000 230,000 210,000 136,000 134,000 76,000 10,000 66,000 24,000 27,000 $ 61,000 39,000 94,000 9,000 85,000 DAN FIELD, INC. Comparative Balance Sheet December 31, 2015 and 2014 2015 2014 2013 Assets Current Assets: Cash Accounts Receivables, Net Merchandise inventory Frepald Experees Total Current Assets $ 97,000 95,000 112,000 118,000 102,000 145,000 163,000203,000 12,000 366,000 211.000 5,000 381,000 179,000 Property, Plant, and Equipment, Net Total Assets 577,000560,000 598,000 Liabilities Total Current Labilities Long-term Labilites Total Liablities 225,000 246,000 114,000 339.000 97,000 343,000 Stockholders' Equity Preferred Stock, 3% Common Stockholders" Equity no par Total Liablities and Stockholders' Equity 577.000 $560,000 108,000 108,000 130,000 109,000 85,000 Selected 2013 amounts