Condensed statement of financial position and comprehensive income statement data for Click and Clack Ltd. ratios. follow:

Additional information:
1. The allowance for doubtful accounts was $4,000 in 2011 and $5,000 in 2012.
2. Accounts receivable at the beginning of 2011 were $88,000, net of an allowance for doubtful accounts of $3,000.
3. Merchandise inventory at the beginning of 2011 was $115,000.
4. Total assets at the beginning of 2011 were $630,000.
5. Total current liabilities at the beginning of 2011 were $180,000.
6. Total liabilities at the beginning of 2011 were $371,000.
7. Shareholders' equity at the beginning of 2011 was $259,000.
8. Seventy-five percent of the sales were on account.
9. Net cash provided by operating activities was $85,000 in 2011 and $96,000 in 2012.
10. Net capital expenditures were $50,000 in 2011 and $125,000 in 2012.
11. In each of 2011 and 2012, $8,000 of dividends were paid to the common shareholders.
Instructions
(a) Calculate all possible liquidity, solvency, and profitability ratios for each of 2011 and 2012.
(b) Discuss the changes in Click and Clack's liquidity, solvency, and profitability from 2011 to 2012 with reference to the relevant ratios calculated in (a).

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CLICK AND CLACK LTD. Statement of Financial Position December 31 2012 2011 Assets Cash Accounts receivable (net) Merchandise inventory Prepaid expenses Long-term investments Property, plant, and equipment (net) Total assets 70,000 95,000 130,000 24,000 45,000 s 65,000 90,000 125,000 23,000 390,000 40,000 305,000 $754,000 $648.000 Liabilities and Shareholders Equity Liabilities 45,000 Accounts payable Accrued liabilities Bank loan payable (current) Bonds payable, due 2022 s 42,000 40,000 30,000 100,000 110,000 200,000150,000 385,000 Total liabilities 332,000 Shareholders' equity Common shares (20,000 shares issued) Retained earnings Accumulated other comprehensive loss 200,000 172,000 (3,000) 369,000 200,000 116,000 Total shareholders' equity Total liabilities and shareholders' equity 316,000 $648,000 $754,000 CLICK AND CLACK LTD. Statement of Comprehensive Income Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Profit from operations Interest expense 2012 $900,000 600,000 300,000 184,000 116,000 30,000 2011 $840,000 575,000 265,000 160,000 105,000 20,000 Profit before income tax Income tax expense Profit Other comprehensive loss Total comprehensive income 86,000 22,000 64,000 (3,000) 61,000 85,000 20,000 65,000 S 65,000