1. Compute the following ratios for 2018 and 2017: a. Current ratio b. Cash ratio c. Times-interest-earned ratio d. Inventory turnover e. Gross profit percentage f. Debt to equity ratio g. Rate of return on common stockholders' equity h. Earnings per share of common stock i. Price/earnings ratio 2. Decide (a) whether Manfield's ability to pay debts and to sell inventory improved or deteriorated during 2018 and (b) whether the investment attractiveness of its common stock appears to have increased or decreased. Additional Financial Information X 1. Market price of Manfield's common stock: $137.34 at December 31, 2018, and $63.84 at December 31, 2017 2. Common shares outstanding: 9,000 on December 31, 2018 and 8,000 on December 31, 2017 and 2016. 3. All sales are on credit. Manfield, Inc. Comparative Income Statement Years Ended December 31, 2018 and 2017 2018 2017 Net Sales Revenue $ 468,000 $ 423,000 Cost of Goods Sold 237,000 215,000 Gross Profit 231,000 208,000 Operating Expenses 133,000 131,000 Income From Operations 98,000 77,000 Interest Expense 10,000 15,000 Income Before Income Tax 88,000 62,000 Income Tax Expense 20,000 27,000 $ 68,000 $ 35,000 Net Income Manfield, Inc. Comparative Balance Sheet December 31, 2018 and 2017 2018 2017 2016* $ Assets Current Assets: Cash Accounts Receivables, Net Merchandise Inventory Prepaid Expenses Total Current Assets 98,000 $ 112,000 147,000 12,000 96,000 115,000 $ 107,000 159,000 210,000 9,000 369,000 214,000 Property, Plant, and Equipment, Net 379,000 172,000 551,000 583,000 $ Total Assets $601,000 Liabilities Total Current Liabilities Long-term Liabilities Total Liabilities $ 230,000 $ 243,000 121,000 96,000 351,000 339,000 104,000 128,000 Stockholders' Equity Preferred Stock, 3% Common Stockholders' Equity, no par Total Liabilities and Stockholders' Equity Selected 2016 amounts 104,000 108,000 86,000 $ 583,000 $ 551,000