December 31 2018 2017 Great Oaks Furniture Balance Sheets Assets Cuma Asas Cash Accounts receivable Inventory Prepaid expenses Total current assets Building and equipment, net Total assets $ 41,200 570,000 5,070,000 83,800 5,765,000 1,097,000 $6,862,000 $ 53,000 443,000 4,841,000 78,000 5,415,000 1,095,000 $6,510,000 Liabilities and Stockholders' equity Cumakabides Accounts payable Bank loan payable Other accrued payables Total current liabilities Long-term debt Total liabilities Shakirodas'aque Common stock Retained earnings Total stookholders' equity Total liab, and stockholders' equity $ 604,000 679,000 213,000 1,496,000 1,729,000 3,225,000 $ 624,000 625,000 313,000 1,562,000 1,797,000 3,359,000 1,359,000 2,278,000 3,637,000 $6,862,000 1,359,000 1,792,000 3,151,000 $6,510,000 Year Ended December 31 2018 2017 $5,568,000 $5,253,000 2,840,000 2,627,000 2,728,000 2,626,000 Great Oaks Furniture Statements of Earnings Net sales Cost of goods sold Gross margin Operating expenses: Selling expenses General and admin. expenses Total operating expenses Operating income Interest expense Income before taxes Income taxes Net income 501,000 835,000 1,336,000 1,392,000 139,000 1253,000 439,000 $814,000 630,000 788,000 1,418,000 1,208,000 158,000 1,050,000 368,000 $ 682,000 Additional information: Shares of common stock outstanding at end of both years Price per share at end of 2017 Price per share at end of 2018 100,000 110 134 Fazira Calculate earnings per share, the price-earnings ratio, the gross margin percentage, return on total assets, and return on common stockholders for 2017 and 2018 Earnings per share 2018 $814,000 $ 682,000 100,000 = $ 100,000 = $ 8.14 6.82 2017 Price earnings ratio 2018 $ 134 $ 8.14 - 16.46 2017 $ 110 $ 6.82 = 16.13 Gross margin percentage 2018 $2,728,000 $5,568,000 - 49.0% 2017 $2,626,000 $5,253,000 = 50.0% Return on total assets 2018 $ 814,000 $6,686,000 - 12.2% 2017 682,000 $6,686,000 = 10.2% Return on common stockholders' equity 2018 $ 814,000 $3,394,000 = 24.0% 2017 $682,000 $3,394,000 = 20.1% Can you identify any significant findings or trends when comparing the ratios between years? What other information would be necessary in order to make a complete assessment of Great Oaks performance