ORIOLE COMPANY Balance Sheets December 31 Assets 2017 2016 Cash $70,000 $ 69,000 Debt investments (short-term) 51,000 40,000 Accounts receivable 107,000 92,000 Inventory 234,000 167,000 Prepaid expenses 26,000 23,000 Land 135,000 135,000 Building and equipment (net) 261,000 184,000 Total assets $884,000 $710,000 Liabilities and Stockholders' Equity Notes payable $172,000 $106,000 Accounts payable 66,000 52,000 Accrued liabilities 42,000 42,000 Bonds payable, due 2017 251,000 170,000 Common stock, $10 par 204,000 204,000 Retained earnings 149,000 136,000 Total liabilities and stockholders' equity $884,000 $710,000 ORIOLE COMPANY Income Statements For the Years Ended December 31 2017 2016 Sales revenue $882,000 $781,000 Cost of goods sold 641,000 574,000 Gross profit 241,000 207,000 Operating expenses 190,000 160,000 Net income $51,000 $47,000 Additional information: 1. Inventory at the beginning of 2016 was $117,000. 2. Accounts receivable (net) at the beginning of 2016 were $88,000. 3. 4. Total assets at the beginning of 2016 were $631,000. No common stock transactions occurred during 2016 or 2017. 5. All sales were on account. Compute the liquidity and profitability ratios of Oriole Company for 2016 and 2017. (Round all answers to 2 decimal places, eg. 1.83 or 1.83% If % change is a decrease show the numbers as negative, eg.-1.83% or (1.83%)) 2016 2017 % Change LIQUIDITY Current 1.955 1 1.743 10.84 ratio Accounts receivables 8.68 times 8.86 times 2.07 turnover Inventory 4.04 times 3.199 times 21.04 % turnover PROFITABILITY 2016 2017 % Change Profit margin 6.02 % 5.78 % 3.99 Asset turnover 1.16 times 111 times -431 Return on 7 % 64 % 06 assets Earnings per share 2.30 2.50 8.7 Return on common stockholders' equity 2017 14.72 96 2018 11.57 % % Change 2140 9 Debt to 60.1 % 40.6 % 3245 9 assets ratio: Price earnings 3.60 times 444 times 23.33 ratio