Case Study 4 Using the financial information in the following tables, compute the required ratios list on the ratio analysis sheet and then complete the horizontal and vertical analyses worksheets. BC COMPANY BALANCE SHEET AS OF DECEMBER 31, 2018 ASSETS Current assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment Accumulated depreciation TOTAL ASSETS LIABILITIES Current liabilities Accounts payable Accrued liabilities Income taxes payable Current portion of long-term debt Total current liabilities Long-term liabilities Long-term debt TOTAL LIABILITIES STOCKHOLDERS EQUITY Common stock Additional paid-in capital Retained earnings Total stockholderi' equity TOTAL HABILITIES AND STOCKHOLDERS EQUTTY 2018 2017 2016 AA AA ABC COMPANY RATIO ANALYSIS DECEMBER 31,2018 LIQUIDITY RATIOS: Current ratio Current assets/Current liabilities Quick ratio (Current assets - Inventory)/Current liabilities Accounts receivable turnover Sales/Average accounts receivable Days' sales in accounts receivable 365/Accounts receivable turnover Inventory turnover Cost of goods sold/Average inventory PROFITABILITY/PERFORMANCE RATIOS: Profit margin Net income/Net sales Gross profit margin (\%) Gross profit/Sales Earnings per share Net income/Number of shares of stock Sales/Total assets Sales/Total assets Sales/Working capital Sales/(Current assets - Current liabilities) EQUTTY POSITION RATIOS: Owners' equity/Total assets Total stockholder' equity/Total assets Current liabilities/Owner's' equity Current liabilities/Total stockholder's equity Total liabilities/Owners' equity Total liabilities/Total stockholders' equity 12/31/18 12/31/17