The comparative financial statement data of Tanfield, Inc. is as follows:

Tanfield, Inc.
Comparative Income Statement
Years Ended 31 December 2011 and 2010
			2011	2010
		net sales	465.000 $	426.000 $
		cost of goods sold	237.000	214.000
		Gross profit	228.000	212.000
		operating expenses	135.000	133.000
		income from operations	93.000	79.000
		interest expense	9.000	12.000
		Income before income tax	84.000	67.000
		income tax expense	21.000	23.000
		Net income	63.000 $	44.000 $

Tanfield, Inc.
Comparative Balance Sheet
31 December 2011 and 2010
			2011	2010	2009*
		Current assets:
		in advance	94.000 $	$91,000
		short-term receivables, net	107.000	117.000	102.000 $
		stocks	144.000	161.000	201.000
		prepaid expenses	15.000	8.000
		Total current assets	360.000	377.000
		Property, plant and equipment, network	216.000	173.000
		Total assets	576.000 $	550.000 $	599.000
		Total current responsibilities	226.000 $	243.000 $
		long-term liabilities	117.000	95.000
		Total liabilities	343.000	338.000
		Preferred stock, 3%	92.000	92.000
		Common stock equity, not equal	141.000	120.000	85.000
		Total liabilities and equity	576.000 $	550.000 $
* Selected 2009 amounts

1.	Market price of Tanfield's common stock: $108.36 on December 31, 2011 and $61.92 as of December 31, 2010.
2.	Unpaid ordinary shares: 10,000 during 2011 and 8,000 during 2010.
3.	All sales on credit.

Requirements

1. Calculate the following ratios for 2011 and 2010:
	a.	current rate
	b.	once-interest-earned rate
	c.	stock turnover
	d.	common stock return
	e.	Earnings per common stock
	f.	price/earnings ratio
2.	(a) Decide whether the ability to pay off debt and sell stock improved or worsened in 2011, and (b) whether the investment attractiveness of common stock appears to have increased or decreased.

Answer rating: 100% (QA)

To calculate the ratios and analyze the financial performance of Tanfield Inc we will use the data provided in the comparative financial statements 1 Calculation of Ratios for 2011 and 2010 a Current ... View the full answer