(1) Prepare the income statements and balance sheets for years 2017 and 2018 for Smith Company using the following information. The balance sheet numbers are at the end of year figures.

Item	2017	2018
Accounts Payable	150.0	180.0
Accounts Receivable	150.0	180.0
Accumulated Depreciation	270.0	300.0
Cash & Cash Equivalents	10.0	12.0
Common Stock	50.0	50.0
Cost of Goods Sold	550.0	650.0
Depreciation	25.0	30.0
Interest Expense	20.2	21.7
Inventory	200.0	180.0
Long-term Debt	150.0	150.0
Gross Plant & Equipment	520.0	600.0
Retained Earnings	208.5	225.0
Sales	1,000.0	1,200.0
SG&A Expenses	300.0	370.0
Notes Payable	51.5	67.0
Tax Rate	40%	40%

(2) Answer the following questions:

(a) How much did Smith Company spend in acquiring fixed assets in 2018?

(b) How much dividend did Smith Company pay out during 2018?

(c) Using the end of year numbers, did the short-term liquidity improve or deteriorate from 2017 to 2018? Answer this question using at least two short-term liquidity financial ratios.

(d) Using the end of year numbers, did the asset management efficiency improve or deteriorate from 2017 to 2018? Answer this question using at least two asset management financial ratios.