Comparative financial statement data of Dangerfield, Inc. follow:

1. Market price of Dangerfield€™s common stock: $76.67 at December 31, 2016, and
$37.20 at December 31, 2015.
2. Common shares outstanding: 13,000 during 2016 and 11,000 during 2015 and 2014.
3. All sales are on credit.
Requirements
1. Compute the following ratios for 2016 and 2015:
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 Dangerfield€™s ability to pay debts and to sell inventory improved or deteriorated during 2016 and (b) whether the investment attractiveness of its common stock appears to have increased or decreased.

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DANGERFIELD, INC. Comparative Income Statement Years Ended December 31, 2016 and 2015 2016 2015 Net Sales Cost of Goods Sold Gross Pront Operating Expenses Income from Operations Interest Expense Income Before Income Tax Income Tax Expense Net Income $ 465,000 $428,000 237,000 214,000 228,000 214,000 138,000 136,000 78,000 16,000 62,000 25,000 S 57,000 37,000 90,000 10,000 80,000 23,000 DANGERFIELD, INC. Comparative Balance Sheet December 31, 2016 and 2015 2016 2015 2014. Assets Current Assets: Cash Accounts Receivable, Net Merchandise Inventory Prepaid Expenses Total Current Assets 94,000 93,000 107,000 16,000 102,000 45,000 160,000 210,000 19,000 365,000 217,000 8,000 377,000 178,000 Property, Plant, and Equipment, Net Total Assets 5 582,0005555,000 596,000 Liabilities Total Current Liabilities Long-term Liabilities Total Liabilities 228,000 242,000 114,000 342,000 98,000 340,000 Stockholders Equity Preferred Stock, 3% Common Stockholders' Equity, no par Total Liabilities and Stockholders Equity 96,000 144,000 582,000 96,000 19,000 91,000 555000