Financial information for Messersmith Company is presented below.

MESSERSMITH COMPANY Balance Sheets December 31
Assets		2017			2016
Cash		$ 135,800			$ 126,100
Short-term investments		100,880			77,600
Accounts receivable (net)		190,120			155,200
Inventory		242,500			261,900
Prepaid expenses		56,260			44,620
Land		252,200			252,200
Building and equipment (net)		349,200			339,500
		$1,326,960			$1,257,120
Liabilities and Stockholders Equity
Notes payable		$194,000			$194,000
Accounts payable		93,120			81,480
Accrued liabilities		97,000			77,600
Bonds payable, due 2020		291,000			291,000
Common stock, $10 par		388,000			388,000
Retained earnings		263,840			225,040
		$1,326,960			$1,257,120

MESSERSMITH COMPANY Income Statement For the Years Ended December 31
		2017				2016
Net sales			$1,649,000				$1,532,600
Cost of goods sold			1,202,800				1,115,500
Gross profit			446,200				417,100
Operating expenses			362,780				335,620
Net income			$ 83,420				$ 81,480

Additional information:

1.		Inventory at the beginning of 2016 was $228,920.
2.		Total assets at the beginning of 2016 were $1,222,200.
3.		No common stock transactions occurred during 2016 or 2017.
4.		All sales were on account. Accounts receivable, net at the beginning of 2016 were $170,720.
5.		Notes payable are classified as current liabilities.

(a)

Indicate, by using ratios, the change in liquidity and profitability of Messersmith Company from 2016 to 2017. (Round Earnings per share to 2 decimal places, e.g. 1.65, and all other answers to 1 decimal place, e.g. 6.8 or 6.8% .)

		2016			2017			Change
LIQUIDITY
Current			:1			:1		DecreaseIncreaseNo change
Acid-test			:1			:1		DecreaseIncreaseNo change
Accounts receivable turnover			times			times		DecreaseIncreaseNo change
Inventory turnover			times			times		DecreaseIncreaseNo change
PROFITABILITY
Profit margin			%			%		DecreaseIncreaseNo change
Asset turnover			times			times		DecreaseIncreaseNo change
Return on assets			%			%		DecreaseIncreaseNo change
Earnings per share		$			$			DecreaseIncreaseNo change