Refer to the financial statements for Twisted Company in Problem 12-88A.

Twisted Company

Consolidated Income Statements

(In thousands)

Twisted Company
Consolidated Balance Sheets
(In thousands)

Required:
1. Compute the asset efficiency ratios (rounded to two decimal places) for Twisted for 2019 and 2018 (in percentage terms, rounded to two decimal places). Indicate whether efficiency has changed.
2. Compute the profitability ratios (rounded to two decimal places) for Twisted for 2019 and 2018. Determine by how much Twisted's profitability ratios have changed (in percentage terms, rounded to two decimal places) for the 2-year period.
3. Compute the debt management ratios (in percentage terms, rounded to two decimal places) for Twisted for 2018 and 2019. Discuss whether creditors are as secure in 2019 as they were in 2018?

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Year ended December 31, 2019 2018 2017 $51,638 31,050 $20,588 $41,310 24,840 $16,470 $34,425 20,700 $13,725 Sales Cost of goods sold Gross margin Other income, net 383 426 405 $20,971 $16,896 $14,130 Costs and expenses: Selling and administrative $16,570 1,237 $17,807 $ 3,164 $13,465 $11,350 Interest 765 $14,230 $ 2,666 746 $ 1,920 554 $11,904 $ 2,226 623 Total costs and expenses Income before income taxes Provision for income taxes 885 $ 1,603 $ 2,279 Net income December 31, 2019 2018 2017 ASSETS Current assets: $ 360 4,658 6,064 $11,082 4,860 Cash 293 236 Accounts receivable 3,690 4,478 $ 8,461 3,600 3,285 3,442 $ 6,963 2,756 562 Inventories Total current assets Property, plant, and equipment (net) Other assets 574 585 Total assets $16,516 $12,646 $10,281 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: $ 4,230 1,147 $ 5,377 3,150 $ 8,527 $ 4,725 3,264 $ 7,989 $16,516 $ 1,620 1,013 $ 2,633 3,150 $ 5,783 $ 4,725 2,138 $ 6,863 $12,646 Short-tem notes payable Accounts payable 450 720 $ 1,170 3,150 $ 4,320 $ 4,725 1,236 $ 5,961 $10,281 Total current liabilities Long-term debt Total liabilities Common stock & additional paid-in capital Retained eamings Total stockholders' equity Total liabilities and stockholders' equity %24