5-80 Chophr S The Income Stotement and the Sotemant of Cash Flows P5-17 Rate of Change Analyses and Ratios Analyses The following are Cohen Company's comparative financial state LO 5.6 ments for 2017, 2016, and 2015 5.10 For Years Ended December 31 2017 $102,200 2016 2015 5 81,700 Sales [net S 91,300 HOCo of goods sold Gross prof Administrative expenses Interest expense 8,700 7,843) (6.9501 Total expenses hcome belore income laxes Income tax expense Net income Earnings per share For Years Ended December 31, Comparative Retained Earnings Stotements 2017 $28,800 2016 2015 Beginning retained earnings Add: Net income $20,800 11,800 $14,310 Less: Dividends distributed Ending retained earnings $36,990 $28800 December 31 2016 $ 4,000 Comparative Balance Sheets Cash Receivables (ne Inventories Noncurrent assels Tolal Assets Current liabilities Bonds payable 10% Common stock, $2 par Additional paid in copital Retained eornings 2017 $ 4,200 7,600 9,800 $ 4,100 7,000 6,200 8,600 107.100 9,000 112,000 30,000 8,400 53,600 36,990 -0- 40,000 7,600 45,600 28,800 40,000 7,600 45,600 20,800 Total Le bleies and Shoreholders' Equity m2000- Additional uyarmana. Credit sales were 65% of net sales in 2016 and 60% in 2017. At the beginning of 2017, 400 shares of common stock were issued, the first sale of stock in several years. Cohen is concerned. Although it increased the dividends paid per share by 5% in 2017 and its 2017 net income is higher than 2016 net income, the market price of its common stock dropped from $22 per share at the beginning of 2017 to $21 per share at year end. 1. For 2015, 2016, and 2017, prepare rate of change analyses for the income statements and balance sheets of Cohen using a year-to year approach. 2. For 2016 and 2017, compute the following ratios: (a) current, (b) inventory turnover, (e) receivables turnover, (d) net profit margin, (e) earnings per share, (f) return on total assets, (g) return on sharcholders' equity, and (h) debt-to- asscts. 3. Next Level Based on your roults, discuss the possible reasons for the decrease in the market price per share in 2017