Comprehensive Problem 2-st of Cash Flows and Ratios Algo R. Roberts Inc. R. Roberts Inc. Income Statement Comparative Balance Sheets For years ended December 31, 2017 and 2018 December 31, 2018 and 2017 2018 2017 Change 2018 2017 Current assets: Sales (all on credit $498,000 $448.000 Cash $66.180 $48,300 $17,880 Cost of goods sold (312.000 256.000 nens Accounts receivable 34,000 7,000 Gross margin 186,000 192.000 inventory 50,000 48,000 2,000 Prepaid expenses 100 2.400 -1,300 Depreciation 37,000 52.000 Other current assets 1.510 2300 expense -790 Other operating 108.000 90.000 Total current assets 159.790 135,000 24,790 expenses Total operating 145,000 142.000 expenses Operating income 41,000 50,000 Long-term Investments 84,000 58,000 26,000 Other Income Plant assets 310,000 259.000 51,000 expenses) Less: accumulated Interest expense (78,600) (52,000) 26,600 Gain on sale of 5,200 3.600 Total plant assets 207,000 24,400 Investments 231,400 Loss on sale of plant 12,400 475,190 assets 2.900 Total assets 400,000 75,190 Total other income (12,700) 3,100) expenses) Current liabilities: Income before 38,700 46,900 Accounts payable $31,300 Income taxes $32,000 $-700 Income taxes (11,610) 14,070) Accrued liabilities 6,000 5,000 1,000 expense Net income $27090 $32,830 income taxes payable 800 3,000 2,200 Total current liabilitles 38,100 40,000 -1,900 (5300) 3.800) depreciation 190,000 66.000 230,000 64,100 R. Roberts Inc. Long term liabilities: Statement of Retained Earnings Notes Payable 256,000 For the year ended December 31, 2018 Total liabilities 294,100 2018 2017 Ret earnings, Jan. 1 $32,000 $0 Stockholders' equity Common stock. $5 par Add: net income 27.090 32.830 10000 value Deduct: Dividends (16,000) (830) Additional pald-in capital 28,000 Increase in retained 11,090 32,000 Retained earnings 43,090 earnings Ret earnings, Dec. $43.090 $32.000 Total stockholders' equity 181,090 Total llabilities and $475,190 stockholders' equity 110,0000 28,000 0 32,000 11.090 170,000 11,090 $400,000 $75,190 Other Information: Shares of common stock outstanding Earnings per share Didends per share Market price per share, common STOCK 22.000 $123 $0.73 22.000 $1.49 $0.04 $14 $12 Requirement Prepare a vertical analysis on the partial balance sheets for 2017 and 2018. Enter decreases as negative amounts/percents. R. Roberts Inc. Partial Balance Sheet (Horizontal Analysis) For the years ended December 31, 2018 and 2017 Increase/decrease Amount Percent 2018 2017 Current assets: Cash Accounts receivable (net) Inventory Prepaid expenses Other current assets Total current assets Long-term investments Plant assets Less: accumulated depreciation Total plant assets Total assets