Ratio Analysis Attached are the financial statements for Smith Company, Inc. Use the financial statements to calculate the attached ratios. Write a couple sentences interpreting the ratio. Calculate and interpret the following debt ratios: debt ratio, debt-equity ratio, and times interest earned. Calculate and interpret the following profitability ratios: operating profit margin net profit margin, return on assets, and return on equity. 12/31/18 12/31/17 12/31/16 12/31/15 Revenue Total Revenue Cost of Revenue Gross Profit 51,728,000 23,502,000 28,226,000 57,902,000 25,340,000 32,562,000 56,519,100 56,488,000 25,399,800 25,283,000 31,119,300 31,205,000 Operating Expenses Selling General and Administrative Operating Income or Loss 19,184,000 9,042,000 20,706,000 11,856,000 21,225,600 9,893,700 20,736,000 10,469,000 Income from Continuing Operations Other Income/Expenses Net Interest Expense Income Before Tax -1,148,000 1,220,000 6,674,000 -1,507,000 1,288,000 9,061,000 -1,508,400 1,207,800 7,177,500 -2,256,000 853,000 7,360,000 Income Tax Expense Net Income 2,696,000 3,978,000 4,130,000 4,931,000 1,956,600 5,220,900 1,708,000 5,652,000 Project A Project B Project C Year 0 -100,000 -250,000 -500,000 Year 1 50,000 100,000 400,000 Year 2 30,000 100,000 50,000 Year 3 30,000 50,000 50,000 Year 4 20,000 50,000 50,000 12/31/18 12/31/17 12/31/16 12/31/15 Revenue Total Revenue Cost of Revenue Gross Profit 51,728,000 23,502,000 28,226,000 57,902,000 25,340,000 32,562,000 56,519,100 25,399,800 31,119,300 56,488,000 25,283,000 31,205,000 Operating Expenses Selling General and Administrative Operating Income or Loss 19,184,000 9,042,000 20,706,000 11,856,000 21,225,600 9,893,700 20,736,000 10,469,000 Income from Continuing Operations Other Income/Expenses Net Interest Expense Income Before Tax -1,148,000 1,220,000 6,674,000 -1,507,000 1,288,000 9,061,000 -1,508,400 1,207,800 7,177,500 -2,256,000 853,000 7,360,000 Income Tax Expense Net Income 2,696,000 3,978,000 4,130,000 4,931,000 1,956,600 5,220,900 1,708,000 5,652,000 12/31/18 12/31/17 12/31/16 12/31/15 Current Assets Cash And Cash Equivalents Short Term Investments Net Receivables Inventory Other Current Assets Total Current Assets 8,719,000 10,607,000 9,157,000 9,095,000 270,000 8,897,000 6,966,000 2,912,000 7,140,000 7,021,000 6,693,000 6,436,000 3,126,000 2,944,000 2,722,000 2,719,000 2,042,000 43,000 31,000 730,000 21,297,000 29,512,000 25,569,000 21,892,000 Long Term Investments Property Plant and Equipment 2 Goodwill 3 Intangible Assets 4 Other Assets 5 Total Assets 2,407,000 2,039,000 1,949,000 2,310,000 17,587,000 17,237,000 16,590,000 16,316,000 14,806,000 14,741,000 14,429,000 14,176,000 15,823,000 13,835,000 13,432,000 13,080,000 5,122,000 910,000 635,000 749,000 77,042,000 78,274,000 72,604,000 68,523,000 -7 Current Liabilities 18 Accounts Payable 19 Short/Current Long Term Debt 20 Other Current Liabilities 21 Total Current Liabilities 7,211,000 6,724,000 6,157,000 5,545,000 3,951,000 4,017,000 4,400,000 3,108,000 6,601,000 4,112,000 3,870,000 3,882,000 17,763,000 14,853,000 14,427,000 12,535,000 28,293,000 33,793,000 30,052,000 29,591,000 12,611,000 14,522,000 11,102,000 10,466,000 58,667,000 63,168,000 55,581,000 52,592,000 23 Long Term Debt 24 Other Liabilities 25 Total Liabilities 27 Stockholders' Equity 28 Total Stockholder Equity 29 18,375,000 15,106,000 17,023,000 15,931,000