Perform a common size analysis. What has happened to the composition (that is, the % in each category) of assets and liabilites?

Common Size Balance Sheets
Assets			2017	2016
Cash and cash equivalents
Short-term investments
Accounts Receivable
Inventories
Total current assets
Net fixed assets
Total assets
Liabilities and equity			2017	2016
Accounts payable
Accruals
Notes payable
Total current liabilities
Long-term debt
Total liabilities
Common stock
Retained Earnings
Total common equity
Total liabilities and equity
Common Size Income Statements			2017	2016
Sales
COGS except excluding depr. and amort.
Depreciation and Amortization
Other operating expenses
EBIT
Interest Expense
EBT
Taxes (40%)
Net Income

INFO FROM OTHER PARTS:

	Assets			2017	2016
	Cash and cash equivalents			$27,893	$26,565
	Short-term investments			$4,990	4,304
	Accounts Receivable			$69,733	63,756
	Inventories			$111,573	74,382
	Total current assets			$214,190	$169,007
	Net fixed assets			$290,092	265,650
	Total assets			$504,282	$434,657
	Liabilities and equity
	Accounts payable			$44,629	$42,504
	Accruals			$16,736	$15,939
	Notes payable			$26,470	$8,607
	Total current liabilities			$87,835	$67,050
	Long-term debt			$89,872	$77,464
	Total liabilities			$177,707	$144,514
	Common stock			$244,123	$237,013
	Retained Earnings			$82,451	$53,130
	Total common equity			$326,575	$290,143
	Total liabilities and equity			$504,282	$434,657
	Joshua & White Technologies December 31 Income Statements
	(Thousands of Dollars)
				2017	2016
	Sales			$548,486	$522,368
	COGS except excluding depr. and amort.			$391,776	$389,164
	Depreciation and Amortization			$25,675	$23,507
	Other operating expenses			$36,036	$28,730
	EBIT			$95,000	$80,967
	Interest Expense			$7,491	$5,495
	EBT			$87,509	$75,472
	Taxes (40%)			$35,004	$30,189
	Net Income			$52,505	$45,283
	Common dividends			$26,253	$22,642
	Addition to retained earnings			$26,253	$22,642
	Other Data			2017	2016
	Year-end Stock Price			$114.00	$110.00
	# of shares (Thousands)			4,300	4,150
	Lease payment (Thousands of Dollars)			$20,000	$20,000
	Sinking fund payment (Thousands of Dollars)			$5,000	$5,000
a. Use Joshua & White Technologies Financial Statements to calculate the ratios shown below:
	Ratio Analysis			2017	2016	Industry Avg
	Liquidity Ratios
	Current Ratio			2.44	2.52	2.58
	Quick Ratio			1.17	1.41	1.53
	Asset Management Ratios
	Inventory Turnover (Total COGS/Inventories)			3.74	5.55	7.69
	Days Sales Outstanding			46.41	44.55	47.45
	Fixed Assets Turnover			1.89	1.97	2.04
	Total Assets Turnover			1.09	1.20	1.23
	Debt Management Ratios
	Debt Ratio (Total debt-to-assets)			23.1%	19.8%	20.0%
	Liabilities-to-assets ratio			35.2%	33.3%	32.1%
	Times-interest-earned ratio			12.68	14.73	15.33
	EBITDA coverage ratio			4.33	4.08	4.18
	Profitability Ratios
	Profit Margin			9.57%	8.67%	8.86%
	Basic Earning Power			18.84%	18.63%	19.48%
	Return on Assets			10.41%	10.42%	10.93%
	Return on Equity			16.08%	15.61%	16.10%
	Market Value Ratios
	Earnings per share			$12.21	$10.91	NA
	Price-to-earnings ratio			9.34	10.08	10.65
	Cash flow per share			$18.18	$16.58	NA
	Price-to-cash flow ratio			6.27	6.64	7.11
	Book Value per share			$75.95	$69.91	NA
	Market-to-book ratio			1.50	1.57	1.72