Income statement, Lanfield, Inc. Comparative Income Statement Years Ended December 31, 2018 and 2017 2018 2017 Net Sales Revenue $ 465,000 $ 423,000 244,000 217,000 Cost of Goods Sold Gross Profit 221,000 206,000 137,000 135,000 Operating Expenses Income From Operations 84,000 71,000 10,000 11,000 Interest Expense Income Before Income Tax 74,000 60,000 17,000 23,000 Income Tax Expense $ 57,000 $ 37,000 Net Income Print Done -X Balance sheet Lanfield, Inc. Comparative Balance Sheet December 31, 2018 and 2017 2018 2017 2016" Assets Current Assets: Cash 90,000 $ 88,000 Accounts Receivables, Net 110,000 119,000 $ 101,000 Merchandise Inventory 148,000 160,000 211,000 18,000 9,000 Prepaid Expenses Total Current Assets 366,000 376,000 219,000 174,000 Property, Plant, and Equipment, Net $ 585,000 $ 550,000 Total Assets $597,000 Liabilities Total Current Liabilities Long-term Liabilities Total Liabilities $ 225,000 $ 242,000 117,000 94,000 342,000 336,000 - X Stockholders' Equity Preferred Stock, 4% 106,000 106,000 137,000 108,000 Common Stockholders' Equity, no par 95,000 $ 585,000 $ 550,000 Total Liabilities and Stockholders' Equity Selected 2016 amounts Requirements 1. Compute the following ratios for 2018 and 2017 a. Current ratio 2. b. Cash ratio c. Times-interest-earned ratio d. Inventory turnover e. Gross profit percentage f. Debt to equity ratio g. Rate of return on common stockholders' equity h. Earnings per share of common stock i. Price/earnings ratio Decide (a) whether Lanfield's ability to pay debts and to sell inventory improved or deteriorated during 2018 and (b) whether the investment attractiveness of its common stock appears to have increased or decreased. Print Done - X Comparative financial statement data of Lanfield, Inc. follow. (Click the icon to view the income statement.) (Click the icon to view the balance sheet.) Requirement 1a. Compute the current ratios for 2018 and 2017. Begin by selecting the formula to compute the current ratio. Current ratio