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Do Know Profit, Inc. 2018 statement of comprehensive income ($ in millions) Net sales $8800 Cost of goods sold 5600 Depreciation 900 Earnings before interest

Do Know Profit, Inc.

2018 statement of comprehensive income

($ in millions)

Net sales

$8800

Cost of goods sold

5600

Depreciation

900

Earnings before interest and taxes

2300

Interest paid

350

Taxable Income

1950

Taxes

550

Net income

1400

Dividends paid

900

Addition to retained earnings

500

Do Know Profit Inc.

2017 and 2018 Statement of financial positions

($ in millions)

2017

2018

2017

2018

Cash

$170

$110

Accounts payable

135

120

A/R

500

700

Notes payable

1200

1400

Inventory

1240

1000

Total

1335

1520

Total

1910

1810

Long-term debt

2005

2620

Net fixed assets

2000

3500

Common stock

100

200

Retained earnings

470

970

Total Assets

3910

5310

Total liab. & equity

3910

5310

Calculate the Current ratio, Debts ratio of 2017 and 2018. Calculate TIE of 2018. Give brief comments to each of the ratios

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