December 31, 2018 December 31, 2017 Percentage Percentage Balance Sheets Assets Current Assets 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 0.6% 8.3% 73.9% 1.2% 84.0% 16.0% 100.0% $ 53,000 $ 443,000 $ 4,841,000 $ 78,000 $ 5,415,000 $ 1,095,000 $ 6,510,000 0.8% 6.8% 74.4% 1.2% 83.2% 16.8% 100.0% 8.8% 9.9% 3.1% Liabilities and Stockholders' equity Current liabilities Accounts payable $ 604,000 Bank loan payable $ 679,000 Other accrued payables $ 213,000 Total current liabilities $ 1,496,000 Long-term debt $ 1,729,000 Total liabilities $3,225,000 Stockholders' equity Common stock $ 1,359,000 Retained earnings $ 2,278,000 Total stockholders' equity $ 3,637,000 Total liab, and stkhs' equity $ 6,862,000 $ 624,000 $ 625,000 $ 313,000 $ 1,562,000 $ 1,797,000 $ 3,359,000 21.8% 25.2% 47.0% 0.0% 19.8% 33.2% 53.0% 100.0% 9.6% 9.6% 4.8% 24.0% 27.6% 51.6% 0.0% 20.9% 27.5% 48.4% 100.0% $ 1,359,000 $ 1,792,000 $ 3,151,000 $ 6,510,000 Percentage 100.0% 51.0% 49.0% Year Ended 2017 $5,253,000 $2,627,000 $2,626,000 Percentage 100.0% 50.0% 50.0% Great Oaks Furniture Year Ended Statements of Earnings 2018 Net sales $5,568,000 Cost of goods sold $2,840,000 Gross margin $2,728,000 Operating expenses: Selling expenses $ 501.000 General and admin. expenses $ 835,000 Total operating expenses $1,336,000 Operating income $1,392,000 Interest expense $ 139,000 Income before taxes $1,253,000 Income taxes $ 439,000 Net income $ 814,000 12.0% 15.0% 27.0% 23.0% 9.0% 15.0% 24.0% 25.0% 2.5% 22.5% 7.9% 14.6% $ 630,000 $ 788,000 $1,418,000 $1,208,000 $ 158,000 $1,050,000 $ 368,000 $ 682,000 3.0% 20.0% 7.0% 13.0% Are there any major changes between 2017 and 2018? Indicate what could have led to the changes you noted in this analysis. Balance sheet: Income statement