Knapp Inc. Balance Sheet at 1/31/2017 and 1/31/2018 Assets 2017 2018 Cash $ 200 $ 152 Accounts receivable 450 422 Inventory 550 615 Current assets $ 1,200 S 1.189 Plant and equipment $ 2.200 (1.000) Less accumulated depreciation $ 2.630 (1.212) Net plant and equipment $ 1.200 S 1.418 Total assets $ 2.400 $ 2,607 Liabilities and Owners' Equity 2017 2018 Accounts payable S 200 $ 150 Notes payable-current (9%) 0 139 Current liabilities $ 200 289 en Bonds $ 600 000 Owners' equity Common stock $ $ 900 900 700 Retained earnings 818 Total owners' equity $ 1.600 $ 1718 Total liabilities and owners equity $ 2 400 $ 2607 Knapp Inc. Income Statement for Years Ended 1/31/2017 and 1/31/2018 2017 2018 Sales $ 1.470 $ 1,200 700 Cost of goods sold 500 Gross profit $ Selling, general and administrative expenses $ 30 $ 45 220 250 212 Depreciation Operating income $ 250 50 Interest expense s Net income before taxes 200 298 80 Taxes (40%) $ 120 S 178 Net income Print Done a. How much is the firm's net working capital and what is the debt ratio? b. Complete a common-sized income statement, a common-sized balance sheet, and a statement of cash flows for 2018. a. How much is the firm's net working capital and what is the debt ratio? The net working capital is $ (Round to the nearest dollar.) The debt ratio is %. (Round to one decimal place.) b. Complete a common-sized income statement, a common-sized balance sheet, and a statement of cash flows for 2018. Complete the common-sized income statement: (Round to one decimal place) Common-sized income statement Sales $ 1.470 % Cost of goods sold 854 Gross profit 616 % $ 45 % Selling, general, and administrative expenses Depreciation 212 Operating income $ 359 Interest expense 63 Net income before taxes $ 296 Taxes (40%) 118 Net income 178 Complete the assets section of the common-sized balance sheet (Round to one decimal place) Common-sized balance sheet ASSETS Cash $ 152 % Accounts receivable 422 inventory 615 Current assets $ 1,189 Plant and equipment $ 2.630 Less accumulated depreciation (1.212) Net plant and equipment S. 1,418 Total assets 2,607 Common-sized balance sheet LIABILITIES AND OWNERS' EQUITY Accounts payable $ 150 % Notes payable--current (9%) 139 Current liabilities $ 289 % Bonds $ 600 %. Owners' equity Common stock S 900 % Retained earnings 818 Total owners' equity $ 1,718 % Total liabilities and owners' equity 2,607 % Complete the one Statement of Cash Flows Cash Flows from Operating Activities Net income $ Adjustments Depreciation s Decrease in accounts receivable Increase in inventory Decrease in account payable Net cash provided by operating activities Complete the investing activities part of the stat Cash Flows from esting $ Increase in plant and equipment Net cash used in investing activities Complete the financing activities part of the statement of cash flows: (Round to the nearest doll Statement of Cash Flows (Cont'd) Cash Flows from Financing Activities Increase in notes payable $ Dividends Net cash provided by financing activities Net decrease in cash S Cash February 1, 2018 Cash January 31, 2018