Based on the balance sheet and income statement (above) for T. P. Jarmon Company for the year ended December 31, 2015:

a. How much is the firm's net working capital and what is the debt ratio?

b. Complete a statement of cash flows for the period.

c. Compute the changes in the balance sheets from 2014 to 2015.

Assets 2014 2015 S 15,000 6,000 42,000 51,000 1,200 S 115,200 S 286,000 S 401,200 Liabilities and Equity S 14,000 6,000 33,100 83,340 1,200 5 137,640 5 270,100 5 407,740 Accounts receivable Prepaid rent Total current assets Net plant and equipment Total assets 2014 2015 Accounts payable Accruals Notes payable Total current liabilities Long-term debt Common stockholders' equity Total liabilities and equity S 48,000 6,000 15,000 S 69,000 S 160,000 S 172,200 S 401,200 5 56,800 5,100 12,900 5 74,800 5 150,400 S 182,540 5 407,740 T. P. Jarmon Company Income Statement for Years Ended 12/31/2015 Sales Less cost of goods sold Gross profit Operating and interest expenses 5 600,100 460,300 139,800 General and administrative S 29,800 29,800 Total operating and interest expenses Earnings before taxes Taxes Net income available to common stockholders Cash dividends s 60,400 S 70,400 28.160 5 42,240 31,900 s 10,340