PHAROAH COMPANY Balance Sheets December 31 Assets 2017 Cash $ 71,000 Debt investments (short-term) 55,000 Accounts receivable 109,000 Inventory 237,000 Prepaid expenses 23,000 Land 135,000 Building and equipment (net) 263,000 Total assets $893,000 Liabilities and Stockholders' Equity Notes payable $171,000 Accounts payable 65,000 Accrued liabilities 42,000 Bonds payable, due 2020 250,000 Common stock, $10 par 202,000 Retained earnings 163.000 Total liabilities and stockholders' equity 5893,000 2016 $68,000 42,000 90,000 166,000 23,000 135,000 183,000 5707,000 $110,000 50,000 42,000 170,000 202,000 133,000 $707.000 PHAROAH COMPANY Income Statements For the Years Ended December 31 2017 2016 Sales revenue $890,000 $789,000 Cost of goods sold 647,000 574,000 Gross profit 243,000 215,000 Operating expenses 192,000 165,000 Net income $ 51,000 $50,000 Additional information: 1. Inventory at the beginning of 2016 was $116,000. 2. Accounts receivable (net) at the beginning of 2016 were $88,000. 3. Total assets at the beginning of 2016 were 5642,000. 4. No common stock transactions occurred during 2016 or 2017. 5. All sales were on account. (a1) Compute the liquidity and profitability ratios of Pharoah Company for 2016 and 2017. (Round curr 2017 2016 % Change LIQUIDITY Current ratio times Accounts receivables turnover Inventory turnover times times times 2017 2016 % Change PROFITABILITY Profit margin Asset turnover times times Return on assets Earnings per shares