Meagley Company presents the following condensed income statement and balance sheet information for 2016 and 2017:
Income Statements

Balance Sheet

Required:
Prepare Meagley€™s common-size income statements and balance sheets for 2017 and 2016. What trends do your analyses reveal in Meagley€™s operations and financial position?

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For Years Ended December 31 2016 2017 $100,000 60,000 40,000 (21,300 Sales (net) Cost of goods sold Gross profit Operating expenses Interest revenue Interest expense Income before income taxes Income tax expense Nel income Earnings per share 90,000 51,000 39,000 21,900) 1,400 1,500 3,7 16,500 500 16,000 4,700 11.500 December 31 2017 2016 $ 3,000 7,000 11,000 20,000 79,000 $120,000 Cash Receivables (net) Long-lerm investments (bonds) Property and equipment (nel) Tolal Assets Current liabilities Bonds payable, 10% Common stock, $2 par Additional paid-in capital Retained eamings Total Liabilities and Shareholders' Equity 2,000 8,000 12,000 15,000 63,000 $100,000 11,400 25,000 11,600 19,500 32,500 $100,000 $10,000 1 37,000 12,000 21,000 40,000 $120,000