a. How much is the firm's net working capital and what is the debt ratio? b. Complete a common-sized income statement, a common-sized balance sheet, and a statement of cash flows for 2018. Common-sized balance sheet ASSETS Cash 150 % Accounts receivable Inventory 425 625 Current assets 1,200 Plant and equipment 2,600 do do % % Less accumulated depreciation (1,200) Net plant and equipment $ 1,400 % Total assets 2,600 % Knapp Inc. Balance Sheet at 1/31/2017 and 1/31/2018 Assets 2017 2018 Cash Accounts receivable Inventory $ 200 $ 150 450 425 550 625 $ 1,200 $ 1,200 Current assets Plant and equipment $ 2,200 $ 2,600 Less accumulated depreciation (1,000) (1,200) $ 1,200 $ 1,400 Net plant and equipment $ 2,400 $ 2,600 Total assets Liabilities and Owners' Equity 2017 2018 Accounts payable Notes payable-current (9%) Current liabilities Bonds Liabilities and Owners' Equity 2017 2018 $ 200 $ 150 0 150 $ 200 $ 300 $ 600 $ 600 Owners' equity Common stock Retained earnings Total owners' equity $ 900 $ 900 700 800 $ 1,600 $ 1,700 $ 2,400 $ 2,600 Total liabilities and owners' equity Knapp Inc. Income Statement for Years Ended 1/31/2017 and 1/31/2018 Sales Cost of goods sold 2017 $ 1,200 2018 $ 1,450 700 850 $ 500 $ 600 Gross profit Selling, general and administrative expenses $ 30 $ 40 220 250 200 240 Depreciation Operating income $ 250 $ 360 50 64 Interest expense Net income before taxes $ 200 296 80 118 Taxes (40%) $ 120 $ 178 Net income