Astro Languet established Monty Co. as a sole proprietorship on January 5, 2017. At the company's year end of December 31, 2017, the accounts had the following balances (in thousands): $12 133 37 62 Current assets, excluding inventory Other assets Current liabilities Long-term bank loan Owner's investment (excluding income) Purchases during year Jan. 2: 6,150 $11 June 30: 9,840 @ $12 Dec. 10: 7,380 @ $16 67.65 118.08 118.08 303.81 350.81 50.00 Sales Other expenses A count of ending inventory on December 31, 2017, showed there were 4,920 units on hand Astro is now preparing financial statements for the year. He is aware that inventory may be costed using the FIFO or weighted average cost formula. He is unsure of which one to use and asks for your assistance. In discussions with Astro, you learn the following 1. Suppliers to Monty provide goods at regular prices as long as Monty's current ratio is at least 2 to 1. If this ratio is lower, the suppliers increase their 2. The terms of the long-term bank loan include the bank's ability to demand immediate repayment of the loan if the debt to total assets ratio is greater 3. Astro thinks that, for the company to be a success, the rate of return on total assets should be at least 30% price by 10% in order to compensate for what they consider to be a substantial credit risk. than 45% 4. Astro has an agreement with the company's only employee that, for each full percentage point above a 25% rate of return on total assets, she will be given an additional one day off with pay in the following year Prepare an income statement and a year-end balance sheet, assuming the company applies: (1) the FIFO cost formula and (2) the weighted average cost formula. (Enter amounts in thousands. List Current Assets in order of liquidity. Round weighted average cost and final answers to 2 decimal places, e.g. 52.75.) Statement of income FIFO Weighted Average Balance sheet FIFO Weighted Average Recalculate the key ratios given each formula in a decimal place, e.g. 527.5) (Round current ratio answers to 2 dec mal places, eg. 52.75 and all other answers to FIFO Weighted average Current ratio Debt to total assets ratio Rate of return on total assets