E13-18 (Lo4) Ratio Computations and Analysis) Prior Company's condensed financial statements provide the following information PRIOR COMPANY BALANCE SHEET Dec. 31,2017 $ 52,000 198,000 80,000 440,000 3,000 $ 773,000 857,000 $1,630,000 240,000 400,000 990,000 $1,630,000 Dec. 31,2016 $ 60,000 80,000 40,000 360,000 7,000 $ 547,000 853,000 $1,400,000 Cash Accounts receivable (net) Short-term investments Inventory Prepaid expenses Total current assets Property, plant, and equipment (net) Total assets Current liabilities Bonds payable Common stockholders' equity 160,000 400,000 840,000 $1,400,000 Total liabilities and stockholders' equity INCOME STATEMENT FOR THE YEAR ENDED 2017 $1,640,000 (800,000) 840,000 (440,000) (40,000) $ 360,000 Sales revenue Cost of goods sold Gross profit Selling and administrative expenses Interest expense Net income