Please use the following financial statements for questions 1 and 2. ABC Corp. Balance Sheet ($ In thousands) as of as of 12/31/2018 12/31/2017 Assets as of as of 12/31/2018 12/31/2017 Liabilities Cash Accounts Receiveable Inventory 2,150 1,750 1.975 650 1,569 2,000 Accounts Payable Accrued Expenses 2,250 600 1,950 550 Current Assets 5,875 4,219 Current Liabilities 2,850 2,500 Property Plan and Equipment Other tongterm Assets 19,006 450 18,000 1,081 Long-term Debt Other Non-current Liabilities 7,750 250 8,025 225 Total Assets 25,331 23,300 Total Liabilities 10,850 10,750 Common Stock (1,500,000 shares outstanding) Retained Earnings Total Shareholders' Equity 4,050 10,431 14,481 4,050 8,500 12,550 Total Liabilities and Shareholders' Equity 25,331 23,300 Income Statement ($ in thousands) 12 Months Ended 12/31/2018 Sales Cost of Goods Sold (COGS) 14,000 5,656 Gross Profit 8,344 Operating Expenses Wages and Benefits Research and Development General and Administrative 2,400 1,300 500 Income form Operations 4,144 Interest Expense 750 Pre tax Income 3,394 Income tax Expense 713 Net Income 2,681 Dividends 750 1. By what amount did working capital change from 2017 to 2018? A. $1,306,000 B. -$1,306,000 C. $3,025,000 D. -$3,025,000 E. $1,719,000 2. Which of the following is true about ABC Corp.? I. Leverage decreased during 2018 II. Leverage increased during 2018 III. The company paid $0.50/share in dividends in 2018 IV. EPS for the company was $0.0018/share in 2018 A. I and IV B. I and III C. II and IV D. I, III and IV E. II, III and IV