Other information: Comparative financial statement data of Trombly Optical Mart follow: Market price of Trombly Optical Mart common stock: $114.52 at December 31, 2018, and $118.16 at December 31, 2017 E (Click on the icon to view the income statements.) 1. 2. Common shares outstanding: 11,000 during 2018 and 9,000 during 2017 (Click on the icon to view the balance sheets.) 3. All sales on credit 4. Read the requirements. Cash dividends paid per share: $0.05 in 2018 and $0.30 in 2017 Requirements Data Table 1. Calculate the following ratios for 2018 and 2017: Trombly Optical Mart Current ratio a. Comparative Income Statements b. Quick (acid-test) ratio c. Receivables turnover and days' sales oustanding (DSO)-round to the Years Ended December 31, 2018 and 2017 nearest whole day 2018 2017 d. Inventory turnover and days' inventory outanding (DIO)-round to the nearest whole day Net sales 672,000 $ 598,000 280,000 383,000 Accounts payable turnover and days' payable outstanding (DPO)-use cost of goods sold in the numerator of the turnover ratio and round DPO to the nearest whole day e. Cost of goods sold Gross profit 289,000 318,000 f. Cash conversion cycle (in days) g. Times-interest-earned ratio 129,000 146,000 Operating expenses Income from operations 160,000 172,000 h. Return on assets-use DuPont Analysis 31,000 42,000 Interest expense i. Return on common stockholders' equity-use DuPont Analysis j. Earnings per share of common stock k. Price-earnings ratio Income before income tax 129,000 130,000 39,000 54,000 Income tax expense 2. Decide whether (a) Trombly Optical Mart's financial position improved or deteriorated during 2018 and (b) the investment attractiveness of the company's common stock appears to have increased or decreased from 2017 to 2018. 2$ 90,000 $ 76,000 Net income 3. How will what you learned in this problem help you evaluate an investment? Print Done Trombly Optical Mart Comparative Balance Sheets December 31, 2018 and 2017 2018 2017 2016* Current assets: Cash $46,000 $50,000 Current receivables, net 213,000 153,000 $136,000 Inventories 291,000 288,000 180,000 12,000 27,000 Prepaid expenses Total current assets 562,000 518,000 289,000 275,000 Property, plant, and equipment, net $851,000 $793,000 710,000 Total assets Accounts payable $140,000 $110,000 116,000 126,000 197,000 Other current liabilties Total current liabilities 266,000 307,000 240,000 231,000 Long-term liabilities Total liabilities 506,000 538,000 345,000 255,000 196,000 Common stockholders' equity, no par Total liabilities and stockholders' equity $851,000 $793,000 * Selected 2016 amounts