Condensed statement of financial position and income statement data for Pitka Corporation follow:

Additional information:
1. The allowance for doubtful accounts was $4,800 in 2016, $4,500 in 2017, and $5,000 in 2018.
2. All sales were credit sales.
3. Net cash provided by operating activities was $119,600 in 2017 and $102,000 in 2018.
4. Net capital expenditures were $150,000 for 2017 and $180,000 for 2018.
Instructions
(a) Calculate the following ratios for each of 2017 and 2018:
1. Current ratio
2. Receivables turnover
3. Inventory turnover
4. Debt to total assets
5. Times interest earned
6. Free cash flow
7. Gross profit margin
8. Profit margin
9. Asset turnover
10. Return on assets
(b) Identify whether each ratio calculated in part (a) was better, worse, or unchanged between 2017 and 2018.
(c) Explain whether overall
(1) Liquidity,
(2) Solvency, and
(3) Profitability improved, deteriorated, or remained the same between 2017 and 2018.

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PITKA CORPORATION Statement of Financial Position December 31 2018 2017 2016 Assets Current assets Cash Accounts receivable (net) Inventory Total current assets Long-term investments Property, plant, and equipment (net) Total assets $ 25,00o 20,00 18,000 55,00045,00048,0o0 100,000 85,000 64,000 180,000 150,000 130,000 55,000 70,000 45,000 370,000 $735,00o $590,000 $433,000 500,0oo 258,000 ia Liabilities Current liabilities Non-current liabilities Total liabilities Shareholders' equity Common shares Retained earnings Total shareholders' equity Total liabilities and shareholders' equity $735,000 $590,000 $433,00o er $85,00o $ 80,00030,000 155,00085,000 20,ooo 240,000 165,000 50,000 330,000 300,000 300,000 165,000125,00O 83,0o0 495,000 425,000 383,oo0 PITKA CORPORATION Income Statement Year Ended December 3:1 2018 2017 Sales Less: Sales returns and allowances 40,00 Net sales Cost of goods sold Gross profit Operating expense:s ncome from operations Interest expense Income before income tax Income tax expense Net income $740,00o $500,000 50,000 700,000 450,000 450,000 300,000 250,000 150,000 150,00084,00o 100,000 66,0o0 4,000 90,62,00o 10,000 18,00012,40 $72,00O 49,600