Ratios from Comparative and Common-Size Data Consider the following financial statements for Vega Company During the year, management obtained additional bond financing to enlarge its production facilities. The plant addition produced a new high-margin product, which is supposed to improve the average rate of gross profit and return on sales. As a potential investor, you decide to analyze the financial statements: VEGA COMPANY Balance Sheets (Thousands of Dollars) Dec. 31, 2016 Dec. 31, 2015 Assets Cash Accounts receivable (net) Inventory Prepaid expenses Plant and other assets (net) $22,000 39,000 105,000 1,500 463,500 $631,000 $16,100 21,400 72,000 4,000 427,500 $541,000 Total Assets Liabilities and Stockholders' Equity Current liabilities 9% Bonds payable 8% Preferred stock, $50 Par Value Common stock, $10 Par Value Retained earnings Total Liabilities and Stockholders' Equity $77,000 187,500 60,000 225,000 81,500 $631,000 $46,000 150,000 60,000 225,000 60,000 $541,000