$2017$

$2018$

Current ratio

$$

$2\mathrm{.}55$X

$$

$2\mathrm{.}25$X

$($Round to two decimal$$ places.$)$

Part $2$

$2017$

$2018$

$$Acid$-$test ratio

$$

$1\mathrm{.}60$X

$$

$1\mathrm{.}35$X

$($Round to two decimal$$ places.$)$

Part $3$

$2017$

$2018$

Days in receivables

$$

$52\mathrm{.}14$ days

$$

$63\mathrm{.}70$ days

$($Round to two decimal$$ places.$)$

Part $4$

$2017$

$2018$

Days in inventories

$$

$59\mathrm{.}18$ days

$$

$79\mathrm{.}08$ days

$($Round to two decimal$$ places.$)$

Part $5$

$2017$

$2018$

Operating return on assets

$$

$16\mathrm{.}2\%$

$$

$9\mathrm{.}6\%$

$($Round to one decimal$$ place.$)$

Part $6$

$2017$

$2018$

Operating profit margin

$$

$13\mathrm{.}75\%$

$$

$8\mathrm{.}9\%$

$($Round to one decimal$$ place.$)$

Part $7$

$2017$

$2018$

Total asset turnover

$$

$1\mathrm{.}17$X

$$

$1\mathrm{.}08$X

$($Round to two decimal$$ places.$)$

Part $8$

$2017$

$2018$

Fixed asset turnover

$$

$1\mathrm{.}96$X

$$

$2\mathrm{.}07$X

$($Round to two decimal$$ places.$)$

Part $9$

$2017$

$2018$

Debt ratio

$$

$44\mathrm{.}1\%$

$$

$50\mathrm{.}4\%$

$($Round to one decimal$$ place.$)$

Part $10$

$2017$

$2018$

Times interest earned

$$

$4\mathrm{.}05$X

$$

$1\mathrm{.}70$X

$($Round to two decimal$$ places.$)$

Part $11$

$2017$

$2018$

Return on equity

$$

$17\mathrm{.}2\%$

$$

$6\mathrm{.}35\%$

$($Round to one decimal$$ place.$)$

Part $12$

$(2)$ Complete a$$ common$-$sized income statement for $2017$ and $2018.($Round to one decimal$$ place.$)$

Common$-$Sized Income Statement $($$ thousands$)$ for the Years Ended $12/31/2014$ and $12/31/2015$

$2017$

$2017$

$2018$

$2018$

Sales

$$5,600$

$100\mathrm{.}0$

$\%$

$$5,300$

$\%$

Cost of goods sold

$(3,700)$

$-66\mathrm{.}1$

$\%$

$(3,600)$

$\%$

Gross profits

$$1,900$

$33\mathrm{.}9$

$\%$

$$1,700$

$\%$

Operating expenses:

Selling, general, and administrative expenses

$(810)$

$-14\mathrm{.}5$

$\%$

$(750)$

$\%$

Depreciation expenses

$(320)$

$-5\mathrm{.}7$

$\%$

$(480)$

$\%$

Total operating expenses

$$(1,130)$

$-20\mathrm{.}2$

$\%$

$$(1,230)$

$\%$

Operating profits

$$770$

$13\mathrm{.}7$

$\%$

$$470$

$\%$

Interest expense

$(190)$

$-3\mathrm{.}4$

$\%$

$(275)$

$\%$

Earnings before taxes $($taxable income$)$

$$580$

$10\mathrm{.}3$

$\%$

$$195$

$\%$

Income taxes

$(122)$

$-2\mathrm{.}2$

$\%$

$(41)$

$\%$

Net income

$$458$

$8\mathrm{.}2$

$\%$

$$154$

$\%$

Part $13$

Common$-$Sized Income Statement $($$ thousands$)$ for the Years Ended $12/31/2017$ and $12/31/2018$

$2017$

$2017$

$2018$

$2018$

Sales

$$5,600$

$100\mathrm{.}0$

$\%$

$$5,300$

$100\mathrm{.}0$

$\%$

Cost of goods sold

$(3,700)$

$-66\mathrm{.}1$

$\%$

$(3,600)$

$-67\mathrm{.}9$

$\%$

Gross profits

$$1,900$

$33\mathrm{.}9$

$\%$

$$1,700$

$32\mathrm{.}1$

$\%$

Operating expenses:

Selling, general, and administrative expenses

$(810)$

$-14\mathrm{.}5$

$\%$

$(750)$

$-14\mathrm{.}2$

$\%$

Depreciation expenses

$(320)$

$-5\mathrm{.}7$

$\%$

$(480)$

$-9\mathrm{.}1$

$\%$

Total operating expenses

$$(1,130)$

$-20\mathrm{.}2$

$\%$

$$(1,230)$

$-23\mathrm{.}2$

$\%$

Operating profits

$$770$

$13\mathrm{.}8$

$\%$

$$470$

$8\mathrm{.}9$

$\%$

Interest expense

$(190)$

$-3\mathrm{.}4$

$\%$

$(275)$

$-5\mathrm{.}2$

$\%$

Earnings before taxes $($taxable income$)$

$$580$

$10\mathrm{.}4$

$\%$

$$195$

$3\mathrm{.}7$

$\%$

Income taxes

$(122)$

$-2\mathrm{.}2$

$\%$

$(41)$

$-0\mathrm{.}8$

$\%$

Net income

$$458$

$8\mathrm{.}2$

$\%$

$$154$

$2\mathrm{.}9$

$\%$

Part $14$

$(3)$ Complete a$$ common$-$sized balance sheet for $2017$ and $2018.($Round to one decimal$$ place.$)$

Common$-$Sized Balance Sheet $($$ thousands$)$ for $12/31/2017$ and $12/31/2018$

$2017$

$2017$

$2018$

$2018$

ASSETS

Cash

$$400$

$\%$

$$485$

$\%$

Accounts receivable

$800$

$\%$

$925$

$\%$

Inventories

$600$

$\%$

$780$

$\%$

Other current assets

$115$

$\%$

$150$

$\%$

Total current assets

$$1,915$

$\%$

$$2,340$

$\%$

Gross fixed assets

$$4,650$

$\%$

$$4,850$

$\%$

Accumulated depreciation

$(1,800)$

$\%$

$(2,300)$

$\%$

Net fixed assets

$