b. To assess the client's financial condition, Bill has calculated several liquidity, profitability/ performance, and solvency ratios on workpaper 2-1. Complete the workpaper by calculating the remaining 2018 and 2017 values in each ratio category, including the change and percent change for each of the ratios. Round all ratios to two decimal places. TIP: To calculate the percent change from 2017 to 2018, divide column 3 (change) by column 2 (2017), not by column 1 (2018). 2.2 PERCENT INDUSTRY CHANGE AVERAGE -7.23% 1,53 5.00% 0.43 -9.73% 20.29 1 Oceanview Marine Company 2 Ratio Analysis 3 December 31, 2018 4 5 6 7 Unadjusted 8 LIQUIDITY RATIOS: 12/31 2018 12/31/2017 CHANGE 9 10 Current ratio 11 cument assets/ current liabilities 231 249 -0.18 12 Quick ratio 13 (current assets - inventory/current liabilities 0.42 0.40 0.02 14 Sales/ Receivables 15 net saleset ending receivables 16.05 17.78 -1.73 16 Number of days sales in A/R 17 metending receivables/ (net salos/365) 18 Inventory turnover 19 004 of sales / average inventory 20 21 PROFITABILITY/PERFORMANCE RATIOS 22 23 Gross profit margin (%) 24 gross profit/ net sales 25 Income before taxes Owners' equity 26 net income before taxes / total owners' equity 27 Income before taxes / Total assets 28 net income before taxes / total assets 0.06 0.04 0.02 29 Sales/Long-term assets 30 net sales / net long-term assets 44.29 3733 6.96 31 Sales/ Total assets 32 net sales/totales 1.54 1.49 0.05 33 Sales/Working capital 34 net sales/ (cuments - current liabilities) 2.82 2.59 0.23 35 36 SOLVENCY RATIOS: 17.99 1.41 23.83% 0.06 50.00% 0.04 18,64% 19.07 3.36% 1.32 8.88% 2.18 0.56 0.59 -0.03 -5.08% 0.31 0.06 0.07 -0.01 -14.29% 0.47 1.13 38 Owners' Equity / Total assets 39 Total stockholders' quity/total assets 40 Long-term assets/Owners' equity 41 net long-term assets total stockholders equity 42 Current liabilities/Owners' equity 43 current liabilities total stockholders guity 44 Total Liabilities/Owners' equity 45 total abilities/total stockholders equity 46 47 48 49 50 51 52 2.03 b. To assess the client's financial condition, Bill has calculated several liquidity, profitability/ performance, and solvency ratios on workpaper 2-1. Complete the workpaper by calculating the remaining 2018 and 2017 values in each ratio category, including the change and percent change for each of the ratios. Round all ratios to two decimal places. TIP: To calculate the percent change from 2017 to 2018, divide column 3 (change) by column 2 (2017), not by column 1 (2018). 2.2 PERCENT INDUSTRY CHANGE AVERAGE -7.23% 1,53 5.00% 0.43 -9.73% 20.29 1 Oceanview Marine Company 2 Ratio Analysis 3 December 31, 2018 4 5 6 7 Unadjusted 8 LIQUIDITY RATIOS: 12/31 2018 12/31/2017 CHANGE 9 10 Current ratio 11 cument assets/ current liabilities 231 249 -0.18 12 Quick ratio 13 (current assets - inventory/current liabilities 0.42 0.40 0.02 14 Sales/ Receivables 15 net saleset ending receivables 16.05 17.78 -1.73 16 Number of days sales in A/R 17 metending receivables/ (net salos/365) 18 Inventory turnover 19 004 of sales / average inventory 20 21 PROFITABILITY/PERFORMANCE RATIOS 22 23 Gross profit margin (%) 24 gross profit/ net sales 25 Income before taxes Owners' equity 26 net income before taxes / total owners' equity 27 Income before taxes / Total assets 28 net income before taxes / total assets 0.06 0.04 0.02 29 Sales/Long-term assets 30 net sales / net long-term assets 44.29 3733 6.96 31 Sales/ Total assets 32 net sales/totales 1.54 1.49 0.05 33 Sales/Working capital 34 net sales/ (cuments - current liabilities) 2.82 2.59 0.23 35 36 SOLVENCY RATIOS: 17.99 1.41 23.83% 0.06 50.00% 0.04 18,64% 19.07 3.36% 1.32 8.88% 2.18 0.56 0.59 -0.03 -5.08% 0.31 0.06 0.07 -0.01 -14.29% 0.47 1.13 38 Owners' Equity / Total assets 39 Total stockholders' quity/total assets 40 Long-term assets/Owners' equity 41 net long-term assets total stockholders equity 42 Current liabilities/Owners' equity 43 current liabilities total stockholders guity 44 Total Liabilities/Owners' equity 45 total abilities/total stockholders equity 46 47 48 49 50 51 52 2.03