Learning Objective 4 P17-27A Using ratios to evaluate a stock investment Comparative financial statement data of Sanfield, Inc. follow 1. 2018: e 48.9% SANFIELD, INC Comparative Income Statement Years Ended December 31, 2018 and 2017 SANFIELD, INC Comparative Balance Sheet December 31, 2018 and 2017 2018 2017 2016 2018 2017 Assets Net Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses income from Operations Interest Expense Income Before Income Tax Income Tax Expense Net Income 5 462,000 430,000 236000 213,000 Current Assets: 226,000 217,000 135,000 133,000 91,000 84,000 12,000 83,00072000 99,000 97,000 109,000 117,000 100,000 142,000164,000 207,000 15,000 365,000 383,000 215,000 177,000 580,000 $560,000 $ 599,000 Accounts Receivable, Net Merchandise Inventory Prepaid Expenses 8,000 5,000 Total Current Assets 18,000 22,000 Property, Plant, and Equipment, Net 65,000 50,000 Total Assets Liabilities 22.000 $244.00 Total Current Liabilities Long-term Liabilities Total Liabilities 113,000 92.000 335,000 336,000 Stockholders' Equity Preferred Stock, 4% Common Stockholders Equity, no par 153,000 132,000 85,000 Total Liabilities and Stockholders' Equity $ 580,000 560,000 92,000 92,000 Selected 2016 amounts 1. Market price of Sanfield's commo n stock: $51.48 at December 31, 2018, and $37.08 at December 31, 2017 2. Common shares outstanding: 16,000 on December 31,2018 and 15,000 on Decem- ber 31, 2017 and 2016. 3. All sales are on credit. Requirements 1. Compute the following ratios for 2018 and 2017 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