e the following information to answer the questions below: note: all sales are credit sales 2018 2017 Income Stmt info: Sales less Cost of Goods Sold: 900,000 $ 990,000 $ 346,125 325,000 643,875 Gross Profit 575,000 Operating Expenses 477,000 450,000 166,875 125,000 Earnings before Interest & Taxes Interest exp 31,000 25,000 135,875 earnings before Taxes 100,000 54,350 40,000 60,000 $ Taxes Net Income $ 81,525 12/31/2017 12/31/2018 Balance Sheet info: 60,000 $ 63,600 Cash 80,000 $ 89,600 Accounts Receivable 110,000 $ 118,800 Inventory 250,000 $ Total Current Assets 272,000 Fixed Assets (Net) 300,000 $ 330,000 Total Assets 550,000 $ 602,000 Current Liabilities 130,000 $ 156,000 150,000 S Long Term Liabilities 170,000 Total Liabilities 280,000 $ 326,000 Stockholder's Equity $ 270,000 $ 276,000 Total Liab & Equity: 550,000 $ 602,000 Compute each of the following ratios for 2017 and 2018 and indicate whether each ratio was getting "better" or "worse" from 2017 to 2018 and whether the 2018 ratio was "good" or "bad" compared to the Industry Avg (round all numbers to 2 digits past the decimal place) "Good" or "Bad" compared Getting 2018 to Better or Getting Industry Industry Avg Ave Worse? 2018 2017 0.09 Profit Margin 1.80 Current Ratio 1.12 Quick Ratio 0.18 Return on Assets 0.60 Debt to Assets 12.00 Receivables turnover 22.10 Avg.collection period* Inventory Turnover* Return on Equity 8.25 0.16 8.15 Times Interest Earned *Assume a 360 day year *Inventory Turnover can be computed 2 different ways. Use the formula listed in the text (the one the text indicates many credit reporting agencies generally use) 0 Sheet3 Sheet2 Sheet1