72. The following condensed income statement is for Mason Inc. Mason Inc. Income Statement Years ended December 31, 2017 and 2016 (in thousands) Net sales (80% are credit sales) Cost of goods sold Gross margin Selling and administrative expenses Operating income Interest expense Income before taxes Income tax expense Net income 2017 $ 60,000 26.000 34.000 6.000 28,000 1,000 27,000 2.000 $ 25,000 2016 $ 46,000 20,000 26,000 4,000 22,000 1.000 21,000 1,000 $20,000 Mason Inc. Balance Sheet Years ended December 31, 2017 and 2016 (in thousands) 2017 2016 $ 3,000 4.000 Assets Current Assets Cash and cash equivalents Accounts receivable, net Merchandise inventory Other current assets Total current assets Noncurrent Assets Property, plant and equipment, net Other assets Total Assets 13,000 2.000 22,000 $ 2,000 5,000 11,000 3,000 21,000 100,000 9,000 $131,000 81.000 7.000 $109,000 $ 15,000 4,000 1.000 20,000 $ 13,000 5,000 2.000 20,000 Liabilities and Shareholders' Equity Current Liabilities Accounts payable and other liabilities Short-term debt Income taxes payable and deferred taxes Total current liabilities Noncurrent Liabilities Long-term debt Other liabilities Shareholders' Equity Common stock Retained earnings 3.000 2,000 7.000 6,000 62,000 40.000 41,000 39.000 Total Liabilities and Shareholders' Equity $131.000 $100.000 Required: Compute the following ratios for 2017, and provide a brief explanation after each ratio (round percentage computations to one decimal place and earnings per share to two decimal places (19 points) (1) Gross margin ratio (2) Profit margin ratio (3) Return on assets (4) Return on common shareholders' equity ( amnings per share (assume weighted average shares outstanding totaled 2.900.000 shares) (0) Market capitalization (assume 3,000,000 shares were issued and outstanding at December 31, 2017 and the market price was $9.00 per share) (7) Price-earnings ratio (8) Current ratio (9) Quick ratio (10) Receivables turnover ratio (11) Average collection period (12) Inventory turnover ratio (13) Average sale period