Compute the following ratios for two years. You may use Excel to compute your ratios.

Debt ratio, Gross profit margin, Free cash flow, Times interest earned, Accounts receivable turnover, and Inventory turnover. Please show your work. Also please evaluate the ratio trends, indicate whether they are stronger/weaker, quicker/slower, more/less liquid, more/less risk.

ncome Statement 2016 2017 Sales COGS Margin Depreciation Expenses Operating Income nterest exp ncome Before Taxes Provision for Income Taxes Net Income EPS S3,423,000 S2,864,000 S568,000 $18,900 S340,000 S209,100 S62,500 S146,600 S58,640 S87,960 50.88 S5,834,400 S4,980,000 S854,400 S116,960 S720,000 S17,400 S176,000 ($158,560) ($63,369.60) ($106,136) S-1.06 Statement of Retained Earnings Retained Earnings 2016 Net Income 2017 Paid Dividends 2017 Retained Eamings $203,768 ($106,136) S0 97,632 ncome Statement 2016 2017 Sales COGS Margin Depreciation Expenses Operating Income nterest exp ncome Before Taxes Provision for Income Taxes Net Income EPS S3,423,000 S2,864,000 S568,000 $18,900 S340,000 S209,100 S62,500 S146,600 S58,640 S87,960 50.88 S5,834,400 S4,980,000 S854,400 S116,960 S720,000 S17,400 S176,000 ($158,560) ($63,369.60) ($106,136) S-1.06 Statement of Retained Earnings Retained Earnings 2016 Net Income 2017 Paid Dividends 2017 Retained Eamings $203,768 ($106,136) S0 97,632