Financial information for Star Track Company is presented here:

Additional information: Total assets at the beginning of 1997 were \(\$ 1,175,000\), current liabilities were \(\$ 300,000\), and total liabilities were \(\$ 500,000\). Cash provided by operations was \(\$ 125,000\) in 1998 and \(\$ 75,000\) in 1997.
\section*{Instructions}
Indicate, by using ratios, the change in liquidity, solvency, and profitability of Star Track Company from 1997 to 1998.

Transcribed Image Text:

STAR TRACK COMPANY Balance Sheet December 31 1998 1997 Assets Cash $ 50,000 Short-term investments 80,000 $ 42,000 100,000 Receivables (net) 100,000 87,000 Inventories 440,000 400,000 Prepaid expenses 25,000 31,000 Land 75,000 75,000 Building and equipment (net) 570,000 500,000 Total assets $1,340,000 $1,235,000