Condensed statement of financial position and income statement data for St. Lawrence Ltd. are shown below:

Instructions
(a) Calculate the receivables turnover ratio, inventory turnover ratio, and current ratio for all three years. Assume that the accounts receivable and inventory balances at the end of 2015 were equal to the balances at the end of 2016. The company does not have an allowance for doubtful accounts and all sales are on credit. Conclude on whether the company's liquidity has improved or worsened over this three-year period and support your explanation by relating the results of the turnover ratios to the current ratio.
(b) Calculate the gross profit margin for each year. The price charged to customers has changed little over the three years but the company has entered into new contracts with inventory suppliers. How has this affected this ratio?
(c) Calculate the profit margin ratio. Why has this ratio changed over the three years? Incorporate in your answer any conclusions you made when analyzing the gross profit margin in part (b) above.
(d) Calculate the debt to total assets ratio and the times interest earned ratio for all three years. What strategy pertaining to leverage has the company pursued? Is the company more or less solvent in 2018 than it was in 2016?
(e) The company paid all dividends as soon as they were declared and has only issued common shares. There are no preferred shares. Retained earnings at the beginning of 2016 were $1.3 million. Calculate the cash dividends declared and dividend payout ratio for each year. Why has the payout ratio changed? Do you think that the dividend payout has affected the company's liquidity? Why or why not?
(f) Calculate the asset turnover for each of the three years. Assume that total assets at the end of 2015 were equal to total assets at the end of 2016. Multiply the asset turnover for each year by the profit margin for each year from part (c) above to determine the return on assets for each year. What is the major driver of the company's return on assets?
(g) Calculate the return on common shareholders' equity for each year. Assume that common shareholders' equity at the end of 2015 was equal to that amount for 2016. Why is the return on common shareholders' equity different from the return on assets? Why does the difference between these two ratios change?

ST. LAWRENCE LTD Statement of Financial Position December 31 (in thousands) 201820172016 Assets Current assets Cash Accounts receivable Inventory Total current assets Property, plant, and equipment (net)4,6003.900 Total assets $ 380 $ 230 $ 80 600 550 500 00 70o 80o 1,6801,480 1,380 3,200 $6,280 $5,380 $4,580 ia Liabilities Current liabilities Non-current liabilities Total liabilities Shareholders' equity Common shares Retained earnings Total shareholders' equity Total liabilities and shareholders' equity $6,280 $5,380 $4,58o ies er $ 600 $ 500 $ 400 2,870 2,310 1,780 3,470 2,810 2,180 1,0001,0001,000 1,810 1,570 1,400 2,810 2,570 2,400 ST. LAWRENCE LTD Income Statement Year Ended December 3:1 (in thousands) 2018 2017 2016 $4,500 $4,000 $3,600 2,000 1,9001,800 2,500 2,1001,800 1,970 1,680 1,490 0 Income before income tax30340240 60 $ 320 $ 250 $ 180 Sales (all on credit) Cost of goods sold Gross profit Operating expenses Interest expense 100 80 Income tax expense 110 90 Net income