The financial statements of Johanssen Inc. are presented here:

Additional information:
Income available to common shareholders was $160,000.
The weighted average number of common shares was 40,000.
The share price at December 31 was $35.
Instructions
(a) Calculate the following values and ratios for 2018. We provide the results for 2017 for comparative purposes.
1. Working capital (2017: $260,500)
2. Current ratio (2017: 1.6:1)
3. Debt to total assets (2017: 31.5%)
4. Basic earnings per share (2017: $3.15)
5. Price-earnings ratio (2017: 7.5 times)
(b) Using the information in part (a), discuss the changes in liquidity, solvency, and profitability between 2018 and 2017.

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JOHANSSEN INC. Income Statement Year Ended December 31, 2018 Service revenue $2,218,500 Expenses 1,918,500 98,000 Operating expenses Interest expense Income before income tax Income tax expense Net income 2,016,500 202,000 42,000 160,000 JOHANSSEN INC Statement of Financial Position December 31, 2018 Assets Current assets Cash Held for trading investments Accounts receivable Supplies 60,100 54,000 307,800 25 Property, plant, and equipment Total assets S 446,900 625,300 $1,072,200 Liabilities and Shareholders' Equity Current liabilities Accounts payable Income tax payable Current portion of mortgage payable $100,000 15,000 27,500 Mortgage payable Total liabilities Shareholders' equity 142,500 310,000 452,500 Common shares Retained earnings $307,630 312,070 619,700 $1,072,200 Total liabilities and shareholders' equity