solve step by step

The 2017 four-year comparative financial statements of Digital Shelf Space Corp. follow: Digital Sholl Space Corp Balance Shoot December 31 2017 $ 33,349 56.000 120.207 10.018 1.602 548.800 $769,976 2016 2015 $ 27.718 $ 23,267 72,000 56.000 50.086 31,304 6,637 4.830 876 537 627.200 705,600 $784,517 $821,538 2014 $ 20.938 40.000 17,200 3.784 344 784.000 $866.266 Assets Cash Investments Accounts receivable, net Inventory Prepaid expenses Plant and equipment, net Total assets Uabilities and Equity Accounts payable Accrued wages payable. Income taxes payable Long-term note payable. secured by mortgage on plant assets. Common shares. 30.000 shares Retained eamings. Total liabilities and equity. $ 50,086 16.028 36.662 459,200 176.000 32.000 $764.976 $ 33.182 8.765 19.370 515.200 176.000 32.000 $784.517 $ 24,149 5.366 12.823 571.200 176.000 32.000 $821.538 $18.920 3.440 8.706 627,200 176.000 32.000 $866,266 Digltal Sholf Space Corp. Income Statomont For Yours Ended Docomber 31 Net sales. Cost of goods sold Gross profit. Operating expenses. Operating profit Interest expense Profit before taxes Income taxes Profit 2017 $1,001,728 500.864 $ 500.864 320.553 $ 180.311 27.552 $ 152,759 36.662 $ 116.097 2016 $626.080 331,822 $294,258 175.302 $118.956 30.912 $ 88,044 19.370 $ 68.674 2015 $447,200 241.488 $205,712 107,328 $ 98.384 34.272 $ 64.112 12.822 $ 51,290 2014 $344.000 189.200 $154.800 68.800 $ 86.000 37.632 $ 48.368 8.706 $ 39,662 Part A Calculate the following for 2017 and 2016 (only two years) and identify whether the ratios compare favourably (F) or unfavourably (L) from 2016 to 2017: /14 marks (a) quick ratio, (b) inventory turnover (C) accounts payable turnover, (d) debt ratio (e) times interest earned, (g) profit margin (h) return on total assets, (i) book value per common share. Part B Prepare a trend analysis taking 2015 as the base year through to 2017 (only three years) using the income statement information. Explain the trend. /6 marks 2