Assets	2018		2019
Cash	$17,000		$12,400
Short-term investments.	48,600		18,000
Accounts receivable	351,200		632,160
Inventories	710,200		1,287,360
Total current assets	$1,127,000		$1,949,920
Gross fixed assets	491,000		1,202,950
Less: accumulated depreciation	146,200		263,160
Net fixed assets	$344,800		$939,790
Total assets	$1,471,800		$2,889,710
Liabilities and equity	2018		2019
Accounts payable	$148,600		$327,118
Notes payable	200,000		720,000
Accruals	136,000		284,960
Total current liabilities	$484,600		$1,332,078
Long-term debt	323,432		1,000,000
Common stock (100,000 shares)	460,000		460,000
Retained earnings	203,768		97,632
Total equity	$663,768		$557,632
Total liabilities and equity	$1,471,800		$2,889,710

	2018		2019
Sales	$7,222,384		$7,460,011
Cost of goods sold	3,123,321		3,800,000
Other expenses	340,000		720,000
Depreciation	18,900		116,960
Total operating costs	$3,482,221		$4,636,960
EBIT	$3,740,163		$2,823,051
Interest expense	62,500		176,000
Pretax earnings	$3,677,663		$2,647,051
Taxes (40%)	1,471,065		1,058,820
Net income	$2,206,598		$1,588,231

8. Construct a common size balance sheets for 2018 and 2019. Comment on any changes in the percentages of assets and liabilities.

9. Construct a common size income statement 2018 and 2019. Comment on any of the changes in the composition of the income statement.

10. Compute the following using the data from 2019 except where noted:

a. Current ratio

b. Quick ratio

c. Net working capital

d. Inventory turnover

e. Receivables turnover

f. Total asset turnover

g. Debt/Equity ratio

h. Net profit margin

i. Return on assets

j. Return on equity

11. Use the DuPont equation to decompose return on equity for 2019.