Comparative financial statements for Bent Stew Enterprises are shown below: December 31 2018 2017 Assets Current assets: Cash $ 3,000 $ 800 Accounts receivable 8,500 6,000 Inventory 12,000 8,200 Prepaid expenses 1,400 900 Total current assets 24,900 15,900 Property, plant, and equipment, net 103,600 123,300 Intangible assets, net 64,000 47,000 Total assets $192,500 $186,200 Liabilities and Stockholders Equity Current liabilities: Accounts payable $ 11,000 $ 12,000 Other current liabilities 11,800 3,200 Total current liabilities 22,800 15,200 Long-term debt 120,000 128,000 Total liabilities 142,800 143,200 Stockholders equity: Common stock 15,000 15,000 Additional paid-in capital 20,000 20,000 Retained earnings 14,700 8,000 Total stockholders equity 49,700 43,000 Total liabilities and stockholders equity $192,500 $186,200 Year Ended December 31 2018 2017 Sales $250,000 $ 230,000 Cost of goods sold 164,000 142,300 Gross margin 86,000 87,700 Operating expenses 64,000 54,000 Operating income 22,000 33,700 Interest expense 7,500 5,900 Earnings before income taxes 14,500 27,800 Income taxes 7,800 7,140 Net earnings $ 6,700 $ 20,660

1. Using horizontal analysis, how much is the percentage change in cash for Bent Stew Enterprises from 2017 to 2018? A. 375.00% increase B. 73.33% increase C. 26.67% increase D. 275.00% increase

2. How much is the companys gross margin percentage for 2018? A. (1.98%) B. 34.40% C. 98.16% D. 7.80%

3. Bent Stew Enterprises had 10,000 shares of common stock outstanding during both 2017 and 2018. How much was earnings per share in 2018? A. $0.15 B. $0.67 C. $1.49 D. $19.25

4. The companys stock is selling for a market price of $31.00 per share at the end of 2018, up from $28.00 per share at the end of 2017. There are 5,000 shares of common stock outstanding at the end of 2018. How much is the companys price-earnings ratio at the end of 2018? A. $23.13 B. $1.34 C. $4.32 D. $41.55

5. How much is Bent Stews asset turnover in 2018? A. 1.034 B. 0.027 C. 0.770 D. 1.299

6. How much is return on common stockholders equity for Bent Stew for 2018? A. 15.26% B. 44.67% C. 19.14% D. 13.48%

7. How much is Bent Stews inventory turnover for 2018? A. 7.32 times B. 26.70 times C. 49.86 times D. 13.67 times

8. How much is Bent Stews accounts receivable turnover for 2018? A. 29.41 times B. 37.31 times C. 12.31 times D. 0.03 times