OHARA COMPANY Income Statement For the Year Ended December 31, 2017
Net sales		$2,218,500
Cost of goods sold		1,012,400
Selling and administrative expenses		906,000
Interest expense		78,000
Income tax expense		69,000
Net income		$ 153,100

OHARA COMPANY Balance Sheet December 31, 2017
Assets
Current assets
Cash		$ 60,100
Debt investments		84,000
Accounts receivable (net)		169,800
Inventory		145,000
Total current assets		458,900
Plant assets (net)		575,300
Total assets		$ 1,034,200
Liabilities and Stockholders Equity
Current liabilities
Accounts payable		$ 160,000
Income taxes payable		35,500
Total current liabilities		195,500
Bonds payable		200,000
Total liabilities		395,500
Stockholders equity
Common stock		350,000
Retained earnings		288,700
Total stockholders equity		638,700
Total liabilities and stockholders equity		$1,034,200

Additional information: The net cash provided by operating activities for 2017 was $190,800. The cash used for capital expenditures was $92,000. The cash used for dividends was $31,000. The weighted-average number of shares outstanding during the year was 50,000.

(i)		Working capital. (2016: $160,500; 2017: $263,400)
(ii)		Current ratio. (2016: 1.65:1; 2017: 2.35:1)
(iii)		Free cash flow. (2016: $48,700; 2017: 67,800)
(iv)		Debt to assets ratio. (2016: 31%; 2017: 38.2%)
(v)		Earnings per share. (2016: $3.15; 2017: $3.06)

Discuss changes from 2016 in liquidity, solvency, and profitability.