Comparative financial statement data of Rourke Optical Mart follow:

Other information:
1. Market price of Rourke common stock: $78.12 at December 31, 2010, and $59.10 at December 31, 2009.
2. Common shares outstanding: 19,000 during 2010 and 17,000 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 common stockholders equity
e. Earnings per share of common stock
f. Price/earnings ratio
2. Decide whether
(a) Rourkes financial position improved or deteriorated during 2010
(b) The investment attractiveness of Rourkes common stock appears to have increased or decreased.
3. How will what you learned in this problem help you evaluate aninvestment?

Rourke Optical Mart Comparative Income Statements Years Ended December 31, 2010 and 2009 2010 2009 Net s Cost of goods sold.. 376,000 283,000 Gross profi Operating expenses.... Income from operations Interest expense $688,000 $593,000 312,000 310,000 181,000 166,000 31,000 50,000 Income tax expense Net income 42,000 47,000 $108,000 69,000 Rourke Optical Mart Comparative Balance Sheets December 31, 2010 and 2009 2010 2009 2008 Current assets: Cash Current receivables, net Inventories Prepaid expen Total current assets $ 32,000 36,000 211,000 154,000 $134,000 291,000 288,000 188,000 6.000 30,000 540,000 508,000 288,000 278,000 Property, plant, and equipment, net Total a Total current liabilities Long-termliabilities Total liabilities Preferred stockholders' equity, 3%, $5 par. Common stockholders' equity, no par. Total liabilities and stockholders' equity.... 5828,000 $786,000 704,000 $280,000 $293,000 240,000 231,000 520,000 524,000 65,000 65,000 197,000 $828.000 $786.000 243,000 198,000