Given the information below for Knapp Inc.:

a. How much is the firm’s net working capital and what is the debt ratio?

b. Complete a common-sized income statement, a common-sized balance sheet, and a statement of cash flows for 2018. Interpret your results.

Knapp Inc. Balance Sheet at Dec. 31, 2017 and Dec. 31, 2018

Knapp Inc. Income Statement for Years Ended Dec. 31, 2017 and Dec. 31, 2018

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Assets 2017 2018 Cash $200 $150 Accounts receivable 450 425 Inventory 550 625 Current assets $1.200 $2,200 $1,200 Plant and equipment $2,600 Less accumulated depreciation (1,000) (1,200) Net plant and equipment $1,200 $2,400 $1,400 Total assets $2,600 Liabilities and Owners' Equity 2017 2018 Accounts payable $200 $150 Notes payable current (9%) 150 Current liabilities $200 $300 Bonds $600 $600 Owners' equity Common stock $900 $900 Retained earnings 700 800 Total owners' equity $1,600 $1,700 Total liabilities and owners' equity $2,400 $2.600