Common-Size Analyses Meagley Company presents the following condensed income statement and balance sheet information for 2016 and 2017:

Required:

Next Level Prepare Meagleys common-size income statements and balance sheets for 2017 and 2016. What do trends to your analyses reveal in Meagleys operations and financial position?

Income Statements For Years Ended Decemberr 31 2017 2016 $100,000 -60.000 $40,000 21,300 1,500 $90,000 Sales (net) Cost of goods sold Gross profit Operating expenses Interest revenue Interest expenses Income before income taxes Income tax expense Net income Earnings per share $39,000 -21,900 1,400 -2,500 $16,000 -3,700 $16,500 -5,000 11.500 $%1.92 $11300 $1.95 Balance Sheets December 31, 2017 2016 Cash Receivables (net) Inventories Long-term investments (bonds) Property and equipment (net) Total Assets Current liabilities Bonds payable, 10% Common stock, $2 par Additional paid in capital Retailed earnings Total Liabilities and Shareholders' Equity $3,000 $2,000 7,000 11,000 20,000 79.000 $120,000 $10,000 37,000 12,000 21,000 40,000 $120,000 8,000 12,000 15,000 63,000 $100,000 $11,400 25,000 11,600 19,500 32,500 $100,000