Comparative financial statement data of Old Tyme Candies Corp. appear below:

Other information:

• Market price of Old Tyme Candies Corp. common shares: $24.00 at December 31, 2017, and $12.00 at December 31, 2016.

• Common shares outstanding: 10,000 during 2017 and 7,500 during 2016. There are 1,000 preferred shares outstanding at December 31, 2017 and 2016.

• All sales are on credit.Required
1. Compute the following ratios for 2017 and 2016:
a. Current ratio
b. Inventory turnover
c. Accounts receivable turnover
d. Times-interest-earned ratio
e. Return on assets
f. Return on common shareholders' equity
g. Earnings per common share
h. Price-earnings ratio
i. Book value per common share at year end
2. Decide
(a) Whether Old Tyme Candies Corp.'s financial position improved or deteriorated during 2017,
(b) Whether the investment attractiveness of its common shares appears to have increased or decreased.
3. How will what you have learned in this problem help you evaluate an investment?

OLD TYME CANDIES CORP Income Statement For the Years Ended December 31,2017 and 2016 2017 Net sales Cost of goods sold Gross margin Operating expenses Income from operations Interest expense Income before income tax Income tax expense Net income $311,850 148,850 163,000 79,250 83,750 12,500 71,250 17,850 $53,400 2016 $297,000 147,000 150,000 77,000 73,000 14,000 59,000 14,600 $ 44,400 OLD TYME CANDIES CORFP Balance Sheet December 31, 2017 and 2016 (selected 2015 amounts given for computation of ratios) 2017 2016 2015 Current assets Cash Current receivables, net Inventories Prepaid expenses Total current assets Property, plant, and equipment, net $27,500 67,500 127,500 5,000 227,500 100,500 25,000 62,500 $52,500 95,000 117,500 4,000 209,000 98,000 S328,000 $307,000 $93,000 $100,725 127,500 228,225 5,000 37,500 36,275 $328,000 $307,000 Total assets Total current liabilities Long-term liabilities 295,500 117,500 210,500 5,000 50,000 62,500 Total liabilities Preferred shares, $1.25 Common shares Retained earnings Total liabilities and shareholders' equity 17,500 25,000