Comparative financial statement data of Hollingsworth, Inc., follow:

1. Market price of Hollingsworth's common stock: $50.60 at December 31, 2017, and $33.49 at December 31, 2016
2. Common shares outstanding: 12,000,000 during 2017 and 12,000,000 during 2016
3. All sales are credit sales
Requirements
1. Compute the following ratios for 2017 and 2016:
a. Current ratio
b. Times-interest-earned ratio
c. Inventory turnover
d. Operating income percentage
e. Return on common stockholders' equity
f. Earnings per share of common stock
g. Price/earnings ratio
2. Decide (a) whether Hollingsworth's ability to pay debts and to sell inventory improved or deteriorated during 2017 and (b) whether the investment attractiveness of its common stock appears to have increased or decreased.

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Hollingsworth, Inc. Comparative Income Statements For the Years Ended December 31, 2017 and 2016 2. (amountsin thousands) 2017 449,990 S 234,000 215,990 S 140,000 75,990 S 10,200 65,790 S 6,690 59,100 S 2016 441,010 226,000 215,010 135,000 80,010 12,600 67,410 20,310 47,100 6 Sales revenues Less: Cost of goods sold 8 Gross profit 9 Less: Operating expenses 10 Operating Income 11 Less: Interest expense 12 Income before Income taxes 13 Less: Income tax expense 14 Net Income 15 Hollingsworth, Inc. Comparative Balance Sheets December 31, 2017 and 2016 (amounts In thousands) 2017 2016 2015* 6. Assets Current assets: 8 Cash 9. 97,000 s 123,500 133,000 10,500 364,000 S 206,000 570,000 S 98,000 158,500 S 127,000 S 7,500 391,000 177,000 568,000 Accounts recelvable 10 Inventory 11 Prepald expenses 12 120,000 155,500 Total current assets 13 Property, plant, and equlpment, net 14 Total assets 15 16 17 Current llablitles 18 Long-term llabilitles Llablitles 208,000 S 138,000 346,000 S 230,000 118,000 348,000 19 20 21 22 Preferred stock, 7% 23 Total common stockholders' equity Total stockholders' equlty 25 26 Total llablitles and equity 27 Total llabilitles Stockholders' equlty 90.000 s 134,000 224,000 S 90,000 130,000 S 220,000 110,000 24 IS 570,000 s 568,000