Based on the information for the Madison Company for the year ending December 31, 2018, compute the following:

1. How much is the firm's net working capital and what is the debt ratio for 2018? (5 points: 205 points for each calculation)
2. Complete a statement of cash flows for the period. Interpret the results. (10 points)
3. Compute the changes in balance sheets from 2017 to 2018. What do you learn about Madison Company from these computations? How do these relate to the statement of cash flows? (10 points)

DATA
Balance Sheet:	2017	2018	change
Assets:
Cash	$15,000	$14,000	($1,000)
Marketable Securities	6,000	6,200	$200
Receivables	42,000	33,000	($9,000)
Inventory	51,000	84,000	$33,000
Prepaid expenses	1,200	1,100	($100)
Total current assets	115,200	138,300	$23,100
Gross plant and equipment	316,000	330,000	$14,000
Less: accumulated depreciation	(30,000)	(60,000)	($30,000)
Total assets	$401,200	$408,300	$7,100
	2017	2018
Liabilities and Equity: Accounts payable	$48,000	$57,000	$9,000
Accruals	6,000	5,000	($1,000)
Notes payable	15,000	13,000	($2,000)
Total current liabilities	69,000	75,000	$6,000
Long-term debt	160,000	150,000	($10,000)
Common stock	172,200	183,300	$11,100
Total liabilities and equity	$401,200	$408,300	$7,100
Income Statement for year-ended December 31, 2018 Sales		$600,000
Cost of goods sold		460,000
Gross profit		140,000
Less: Operating and interest expenses:
General and administration	30,000
Interest	10,000
Depreciation	30,000
Total Operating and interest expenses		70,000
Earnings before taxes		70,000
Less: Taxes		27,100
Net income available to common stockholders		42,900
Less: Cash dividends		31,800
Change in Retained earnings		$11,100