Consider the following comparative income statement and additional balance sheet data for Classic Fashions, Inc.

Additional data follow:

Requirements

1. For 2017 and 2018, compute the five ratios that measure how the business is investing its money and whether it is using its assets efficiently. Round each ratio to two decimal places. Assume all sales are on credit.

2. Did the company?s performance improve or deteriorate during 2018?

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Classic Fashions, Inc. Income Statement Years Ended December 31, 2018 and 2017 2017 2018 Net Sales $345,000 $320,000 198,000 147,000 Cost of Goods Sold 185,000 135,000 37,500 Gross Profit Selling and General Expenses Income From Operations Interest Expense 42,000 105,000 97,500 18,500 86,500 18,000 Income Before Income Tax 79,500 8,000 $ 71,500 Income Tax Expense 8,500 $ 78,000 Net Income 2018 2017 2016 Accounts receivable 21,000 8,000 34,000 151,000 $188,000 $185,000 $180,000 19,000 9,000 33,000 155,000 18,000 10,000 31,000 149,000 Inventory.. Total current assets Fixed assets . Total Assets .