The comparative statements of Pristine Interiors Ltd. are presented as follows:

Additional information:
1. All sales were on account.
2. Weighted-average common shares in 2017 were 57,000 and in 2016 were 55,000
Instructions
(a) Calculate the following ratios for 2017 and 2016.
1. Gross profit margin
2. Profit margin
3. Earnings per share
4. Receivables turnover
5. Collection period
6. Inventory turnover
7. Days sales in inventory
8. Return on common shareholders' equity
9. Return on assets
10. Current ratio
11. Acid-test ratio
12. Asset turnover
13. Debt to total assets
(b) Indicate whether each ratio has improved or deteriorated.
TAKING IT FURTHER
Calculate the operating cycle of Pristine Interiors for 2017 and compare the results to its nearest competitor, which has an operating cycle of 75 days. Does Pristine Interiors have a liquidity problem?

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PRISTINE INTERIORS LTD Income Statement For the Year Ended December 31 2017 2016 Net sales Cost of goods sold Gross profit Selling and administrative expenses Income from operations Other expenses and losses $2,055,750 $1,818,500 1,011,500 807,000 510,000 499,000 308,000 1,169,000 886,750 376,750 Interest expense Income before income taxes Income tax expense Profit 17,500 359,250 107,775 $ 251,475 18,000 290,000 87,000 203,000 PRISTINE INTERIORS LTD. Balance Sheet 2 Current assets 2 Property, plant, and equipment (net) Current liabilities Income taxes payable Total current liabilities 2 Total liabilities Shareholders' equity Total shareholders' equity Total liabilities and shareholders' equity $1,136,350