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(Working with financial statements) Based on the balance sheet, and income statement, . for T. P. Jarmon Company for the year ended December 31, 2018: a. How much is the firm's net working capital and what is the debt ratio? b. Complete a statement of cash flows for the period. c. Compute the changes in the balance sheets from 2017 to 2018. T. P. Jarmon Company Balance Sheet for 12/31/2017 and 12/31/2018 Assets 2017 2018 Cash $ 15,000 $ 13,800 6,000 Marketable securities 6,000 Accounts receivable 33,200 Inventory 42,000 51,000 1,200 84,040 1,000 Prepaid rent Total current assets $ 115,200 $ 138,040 Net plant and equipment $ 286,000 $ 269,800 Total assets $ 401,200 $ 407,840 Liabilities and Equity 2017 2018 $ 48,000 $ 57,200 Accounts payable Accruals 4,900 6,000 15,000 Notes payable 13,200 T. P. Jarmon Company Income Statement for Years Ended 12/31/2018 Sales $ 600,400 459,600 $ 140,800 Less cost of goods sold Gross profit Operating and interest expenses General and administrative Interest $ 30,200 10,100 30,100 Depreciation $ 70,400 Total operating and interest expenses Earnings before taxes $ 70,400 28,160 Taxes Net income available to common stockholders $ 42,240 31,600 Cash dividends $ 10,640 Change in retained earnings a. How much is the firm's net working capital and what is the debt ratio? The net working capital is $ 62740. (Round to the nearest dollar.) The debt ratio is 55.2 %. (Round to one decimal place.) b. Complete a statement of cash flows for the period. Complete the operating activities part of the statement of cash flows: (Round to the nearest Statement of Cash Flows Cash flows from Operating Activities Net income $ 42,240 $ 30,100 0 Adjustments Depreciation Increase in marketable securities Decrease in accounts receivable Prepaid expenses Increase in inventaries (less A/P) 8,800 200 (23.840) a. How much is the firm's net working capital and what is the debt ratio? b. Complete a statement of cash flows for the period. c. Compute the changes in the balance sheets from 2017 to 2018. Net income $ 42,240 Adjustments Depreciation $ 30,100 Increase in marketable securities 0 Decrease in accounts receivable 8,800 Prepaid expenses 200 Increase in inventories (less A/P) (23,840) Decrease in accruals (1,100) Net cash provided by operating activities $ 56,400 Complete the investing activities part of the statement of cash flows: (Round to the nearest dollar. NOTE Statement of Cash Flows (Cont'd) Cash Flows from Investing Activities Increase in gross plant and equipment $ (13,900) Net cash provided (consumed) by investing activities $ (13,900) Statement of Cash Flows (Cont'd) Cash Flows from Financing Activities Decrease in notes payable Decrease in debt (1,800) (10,300) (31,600) Dividends Net cash provided by financing activities (43,700) Net decrease in cash (1,200) 15,000 Cash, January 1, 2018 Cash, December 31, 2018 $ 13,800 c. Compute the changes in the balance sheets from 2017 to 2018. Complete the changes in the assets section of the balance sheets from 2017 to 2018: (Round Balance Sheet Changes from 2017 to 2018: Enter any number in the edit fields and then click Check Answer. c. Compute the changes in the balance sheets from 2017 to 2018. Complete the changes in the assets section of the balance sheets from 2017 to 2018: (Round to the nearest dollar Balance Sheet Changes from 2017 to 2018: ASSETS Cash Marketable securities Accounts receivable Inventory Prepaid rent Total current assets Gross plant and equipment Less: Accumulated depreciation Net plant and equipment Total assets