The 2016 and 2017 financial statements of Ken€™s Sportswear follow:

a. Compute all relevant ratios for 2017.
b. Prepare common-size financial statements.
c. Evaluate the company€™s financial performance and condition.

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Balance Sheet 2017 2016 Assets $ 7,000 $ 9,000 Cash Accounts receivable 12,000 9,000 Inventory 18,000 15,000 Property, plant, and equipment 60,000 50,000 $99,000 $81,000 Total assets Liabilities and Shareholders' Equity $16,500 $12,000 Accounts payable Notes payable 46,000 40,000 25,000 25,000 Common stock 4,000 Retained earnings 11,500 Total liabilities and equity $99,000 $81,000 Income Statement $72,000 Sales (all on credit) Less: Cost of goods sold 30,000 $42,000 Gross profit Operating expenses 12,000 $30,000 Net income from operations Interest expense 5,000 Net income before taxes $25,000 Income tax expense 8,500 $16,500 Net income $ 9,000 Dividends $ 30 Per-share market price 2$ 36 Outstanding common shares 2,000 2,000