Question 7 (2 points) Condensed statement of financial position and income statement data for Pronghorn Ltd. are shown below. You are required to calculate certain financial ratios. Round your final results to one decimal place. PRONGHORN LTD. Statement of Financial Position December 31 (in thousands) Assets 2018 2017 2016 Current assets Cash $ 30 $ 80 $ 200 Accounts receivable 900 700 500 Inventory 1,200 800 500 Total current assets 2,130 1,580 1,200 Property, plant, and equipment (net) 4100 3800 3.200 Total assets $6,230 $5.380 $4.400 Liabilities and Shareholders' Equity Liabilities Current liabilities $ 600 $550 $ 500 Non-current liabilities 3.070 2.320 1,500 Total liabilities Shareholders' equity Common shares Retained earnings 3670 2,870 2,000 1,000 1,000 1,000 1560 1510 1,400 Total shareholders' equity 2560 2.510 2.400 Total liabilities and shareholders' equity $6.230 $5.380 $4,400 PRONGHORN LTD. Income Statement Year Ended December 31 (in thousands) 2018 2017 2016 Sales (all on credit) $4.500 $4,000 $3,600 Cost of goods sold 2.500 2,100 1,800 Gross profit 2,000 1,900 1,800 Operating expenses 1450 1475 1,490 Income from operations 550 425 310 Interest expense 190 130 70 Income before income tax 360 295 240 Income tax expense 90 75 60 Net income $270 $ 220 $ 180 The receivables turnover ratio for 2018 is 4.6 times 4.9 times 8.2 times 6.3 times None of the above