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?

SMART TOUCH LEARNING Balance Sheet December 31, 2018 and 2017 SMART TOUCH LEARNING Income Statement Years Ended December 31, 2018 and 2017 2018 2017 2018 2017 Assets Net Sales Cost of Goods Sold Gross Proft Operating Expenses: $ 858,000 803,000 509,000 294,000 Current Assets: 513,000 Cash and Cash Equivalents Accounts Receivable, Net Merchandise Inventory Prepaid Expenses $ 29,000 32,000 85,000 111,000 8,000 236,000 9,000 399,000 787,000 S 644,000 345,000 1 14,000 113,000 6,000 262,000 18,000 507,000 126,000 118,000 244,000 101,000 114,000 123,000 237,000 57,000 nses Administrative Expenses Total Operating Expenses Total Current Assets Long-term Investments Operating Income Plant, and Equipment, Net Other Revenues and (Expenses): Total Assets 4,000 Interest Revenue Interest Expense Total Other Revenues and (Expenses) Liabilities (24,000) 14,000) (20,000) (14,000) 43,000 17,000 S 48,000 S 26,000 Current Liabilities: $ 73,000 27,000 42,000 142,000 289,000 431,000 68,000 Accounts Payable Accrued Liabilities Notes Payable Income Before Income Taxes Income Tax Expense Net Income 81,000 33,000 27,000 126,000 198,000 324,000 Total Current Liabilities Long-term Liabilities Total Liabilities Stockholders' Equity Common Stock, no par Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 186,000 134,000 320,000 S 787,000 644,000 186,000 170,000 356,000