Condensed statement of financial position and comprehensive income statement data for Track Ltd. follow:

Additional information:
1. The allowance for doubtful accounts was $5,000 in 2017 and $10,000 in 2018.
2. Accounts receivable at the beginning of 2017 were $80,000, net of an allowance for doubtful accounts of $3,000.
3. Inventories at the beginning of 2017 were $320,000.
4. Total assets at the beginning of 2017 were $1,075,000.
5. Current liabilities at the beginning of 2017 were $250,000.
6. Total liabilities at the beginning of 2017 were $543,500.
7. Total shareholders' equity at the beginning of 2017 was $531,500.
8. All sales were on account.
9. Net cash provided by operating activities was $135,500 in 2017 and $223,000 in 2018.
10. Net capital expenditures were $50,000 in 2017 and $92,000 in 2018.
11. In each of 2017 and 2018, $4,000 of dividends were paid to the common shareholders.
Instructions
(a) Do we normally include the effects of other comprehensive income in the calculation of profitability ratios?
(b) Calculate all possible liquidity, solvency, and profitability ratios for each of 2017 and 2018.
(c) Indicate whether each liquidity, solvency, and profitability ratio (except any market measures) calculated in part (a) was better, worse, or unchanged between 2017 and 2018. Use higher, lower, or unchanged for any market measures calculated in part (a).
(d) Explain whether Track's overall
(1) Liquidity,
(2) Solvency, and
(3) Profitability improved, deteriorated, or remained the same between 2014 to 2015.

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TRACK LTD Statement of Financial Position December 31 2018 2017 Assets Cash Accounts receivable (net) Inventories Prepaid expenses Long-term investments Land Buildings and equipment (net) Total assets $ 50,o0o 42,000 100,000 87,0oo 400,000 300,000 25,000 31,000 80,00050,00o 125,000 75,000 560,000 400,00o $1,340,0oo $985,o00 ia Liabilities Notes payable Accounts payable Current portion of mortgage payable Mortgage payable, due 2025 Total liabilities Shareholders' equity Common shares (100,000 shares issued)400,000 400,000 Retained earnings Accumulated other comprehensive income Total shareholders' equity Total liabilities and shareholders' equity $1,340,000 $985,000 1o $150,00o 50,0o0 245,00o 190,000 48,75025,000 200,000 125,000 643,750 390,00o 292,250 195,000 4,000 696,250 595,00o TRACK LTD Statement of Comprehensive Income Year Ended December 3:1 2018 2017 Net sales Cost of goods sold Gross profit Operating expenses ncome from operations Interest expense Income before income tax Income tax expense Net Income Other comprehensive income Total comprehensive income $ $1,100,00O $950o,000 650,000 635,0o0 450,000 315,000 285,000 215,00o 165,000 100,000 30,000 10,0oo 135,000 90,000 33,750 22,500 101,25067,50o 4,000 105,250$ 67,500