2. Decide (a) whether Garfield's ability to pay debts and to sell inventory improved or deteriorated during 2018 and (b) whether the investment attractiveness of its common stock appears to have increased or decreased. Requirement 1 2017 2018 a. C. e. f. g. h. i. Requirement 2 a. Garfield is in a position to pay debt in 2018 than in 2017. The current The inventory ratio, cash ratio, and times-interest-earned ratio all so their ability to sell inventory turnover d. b. The attractiveness of Garfield's stock has return on common stockholder's equity share and price/earnings ratio. in 2018. The rate of as well as the earnings per b. d. 9) Explain how financial statements are used to analyze businesses. 1. 2017: e. 50.2% Comparative financial statement data of Garfield, Inc. follow: GARFIELD, INC. Comparative Income Statement Years Ended December 31, 2018 and 2017 2018 2017 S 461,000 $ 424,000 Net Sales Revenue Cost of Goods Sold 241,000 211,000 Gross Profit 220,000 213,000 Operating Expenses 137,000 135,000 Income from Operations 83,000 78,000 Interest Expense 9,000 13,000 Income Before Income Tax 74,000 65,000 Income Tax Expense 18,000 24,000 Net Income S 56,000 S 41,000 eda