Problem 18-5A to evalate a share Comparative financial statement data of Old Tyme Candies Corp appear below investment OLD TYME CANDIES CORP Income Statement For the Years Ended December 31, 2017 and 2016 I. d 2017, 6.70 2016, 521 2017 2016 Net sales Cost of goods sold Gross margin Operating expenses Income from operations Interest expense Income before income tax Income tax expense Net income 5311,850 148,850 147,000 79,250 12,500 71,250 17,850 73,000 14,000 59,000 14,600 OLD TYME CANDIES CORP Balance Sheet December 31, 2017 and 2016 (selected 2015 amounts given for computation of ratios) 2017 2016 2015 Current assets: $ 27,500 $25,000 62,500 27,500 117,500 4,000 227,500 209,000 98,000 Current receivables, net 67,500 $ 52,500 95,000 Inventories Prepaid expenses Total current assets 100,500 Property, plant, and equipment, net Total assets Total current liabilities Long-term liabilities $328,000 $307000295.500 Total liabilities Preferred shares, $1.25 Common shares Retained earnings Total liabilities and shareholders' equity $93,000 $100,725 117,500 127,500 210,500 228,225 5,000 37,500 62,500 36,275 $30000 0,000 17,500 25,000 $328,000 Other information Market price of Old Tyme Candies Corp, common shares: $24.00 at December 31, 2017, Common shares outstanding: 10,000 during 2017 and 7,500 during 2016. There are 1,000 . All sales are on credit. Required 1. Compute the following ratios for 2017 and 2016 and $12.00 at December 31, 2016. preferred shares outstanding at December 31, 2017 and 2016 a. Current ratio b. Inventory tunover c. Accounts receivable turnover d. Times-interest-earned ratio e. Return on assets f. Return on common shareholders' equity g. Earnings per common share h. Price-earnings ratio i. Book value per common share at year end 2. Decide (a) whether Old Tyme Candies Corp.'s financial position improved or deterio- rated during 2017, and (b) whether the investment attractiveness of its common shares appears to have increased or decreased. 3. How will what you have learned in this problem help you evaluate an investment