Accounting, Analysis, and Principles The following information is taken from the 2017 annual report of Tamarisk, Inc. Tamarisks fiscal year ends December 31 of each year. Tamarisks December 31, 2017, balance sheet is as follows. Tamarisk, Inc. Balance Sheet December 31, 2017 Assets Cash $500 Inventory 1,750 Total current assets 2,250 Plant and equipment 1,900 Accumulated depreciation (152) Total assets 3,998 Liabilities Bonds payable (net of discount) $1,426 Stockholders equity Common stock 1,500 Retained earnings 1,072 Total liabilities and stockholders equity $3,998 Note X: Long Term Debt: On January 1, 2016, Tamarisk issued bonds with face value of $1,500 and a coupon rate equal to 10%. The bonds were issued to yield 12% and mature on January 1, 2021. Additional information concerning 2018 is as follows. 1. Sales were $3,400, all for cash. 2. Purchases were $2,000, all paid in cash. 3. Salaries were $770, all paid in cash. 4. Property, plant, and equipment was originally purchased for $1,900 and is depreciated straight-line over a 25-year life with no salvage value. 5. Ending inventory was $1,900. 6. Cash dividends of $100 were declared and paid by Tamarisk. 7. Ignore taxes. 8. The market rate of interest on bonds of similar risk was 12% during all of 2018. 9. Interest on the bonds is paid semiannually each June 30 and December 31. Prepare an income statement for the year ending December 31, 2018. Assume semiannual compounding of the bond interest. TAMARISK, INC. Income Statement $ $ $ SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Prepare a balance sheet for Tamarisk, Inc. at December 31, 2018. Assume semiannual compounding of the bond interest. (List Current Assets in order of liquidity.) TAMARISK, INC. Balance Sheet Assets $ $ : $ Liabilities and Stockholders' Equity $ $ $ SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Compute debt to assets ratio and times interest earned ratio for 2017 and 2018. Tamarisks net income in 2017 was $570 and interest expense was $169. (Round answers to 2 decimal places, e.g. 52.75.) 2017 2018 Debt to asset ratio Times interest earned ratio Has Tamarisks solvency changed much from 2017 to 2018?