Based on pages 776-785 in your textbook, calculate one ratio from each of the following groups (three ratios total) for 2018 for Smart Touch Learning: Ability to Pay Current Liabilities Current Ratio Cash Ratio Ability to Pay Long-Term Debt Debt Ratio Debt-to-Equity Ratio Profitability Profit Margin Ratio Rate of Return on Total Assets What do these results tell you? How will you use this information in planning and decision making? Refer to these comparative financial statements to help you work through this discussion.

SMART TOUCH LEARNING SMART TOUCH LEARNING Balance Sheet Income Statement December 31, 2018 and 2017 Years Ended December 31, 2018 and 2017 2018 2017 2018 2017 Assets S 858,000 803,000 Net Sales Current Assets: Cost of Goods Sold 509,000 513,000 Cash and Cash Equivalents 29,000 S 32,000 Gross Profit 345,000 294,000 Accounts Receivable, Net 114,000 85,000 Operating Expenses Merchandise Inventory 114,000 113,000 111,000 Selling Expenses 126.000 123,000 Prepaid Expenses 6,000 8,000 Administrative Expenses 118,000 Total Current Assets Total Operating Expenses 262,000 236,000 244,000 237,000 Long-term Investments 18.000 9,000 Operating Income 57,000 101,000 507,000 other Revenues and (Expenses) Property, Plant, and Equipment, Net 399,000 Total Assets 787,000 S 644,000 Interest Revenue 4,000 Liabilities Interest Expense (24,000) (14,000) Current Liabilities Total Other Revenues and (Expenses) (14,000) 20.000 73,000 68,000 Accounts payable Income Before Income Taxes 81,000 43,000 Accrued Liabilities 27,000 31,000 ncome Tax Expense 33,000 17,000 Notes Payable 27,000 42.000 S 48,000 26,000 Net Income Total Current Liabilities 142,000 126,000 Long-term Liabilities 289,000 198,000 Total Liabilities 431,000 324,000 Stockholders' Equity Common Stock, no par 186,000 186,000 Retained Earnings 170.000 134.000 Total Stockholders' Equity 356,000 320,000 Total Liabilities and Stockholders' Equity 787,000 644,000