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

Additional information:
1. The allowance for doubtful accounts was $4,000 in 2017 and $5,000 in 2018.
2. Accounts receivable at the beginning of 2017 were $88,000, net of an allowance for doubtful accounts of $3,000.
3. Inventory at the beginning of 2017 was $115,000.
4. Total assets at the beginning of 2017 were $630,000.
5. Total current liabilities at the beginning of 2017 were $180,000.
6. Total liabilities at the beginning of 2017 were $371,000.
7. Shareholders' equity at the beginning of 2017 was $259,000.
8. Seventy-five percent of the sales were on account.
9. Net cash provided by operating activities was $85,000 in 2017 and $96,000 in 2018.
10. Net capital expenditures were $50,000 in 2017 and $125,000 in 2018.
11. In each of 2017 and 2018, $8,000 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 2017 and 2018.
(c) Identify whether each liquidity, solvency, and profitability ratio (except for 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 overall (1) liquidity, (2) solvency, and (3) profitability improved, deteriorated, or remained the same between 2017 and 2018.

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CLACK LTD Statement of Financial Position December 31 2018 2017 Assets Cash Accounts receivable (net) Inventory Prepaid expenses Long-term investments Property, plant, and equipment (net) Total assets s 70,000 65,000 90,000 125,000 23,000 40,000 305,000o $754,000 $648,000 95,000 130,000 24,000 45,000 390,00o ab Liabilities Accounts payable Accrued liabilities Bank loan payable (current) Bonds payable, due 2025 Total liabilities Shareholders' equity Common shares (20,000 shares issued) Retained earnings Accumulated other comprehensive loss Total shareholders' equity Total liabilities and shareholders' equity 1 30,000 110,000 200,00O 385,000 45,000 42,0o0 40,000 100,00O 150,000 332,000 200,oo0 200,000 172,000 116,000 (3,000) 369,000 $754,000 316,000 $648,000 CLACK LTD Statement of Comprehensive Income Year Ended December 3:1 2018 2017 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 loss Total comprehensive income $900,00o $840,o00 600,000 575,ooo 300,000 265,o00 184,000160,0oo 116,000 105,0oo 30,000 20,000 86,000 85,0oo 20,000 64,0065,000 22,000 (3,000) 61,00o 65,000