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Revenues Cost of sales Gross proflt Expenses Salaries and wages Occupancy costs Interest expenses Credit card and bank fees Office and general Professional fees Consulting

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Revenues Cost of sales Gross proflt Expenses Salaries and wages Occupancy costs Interest expenses Credit card and bank fees Office and general Professional fees Consulting Travel Mise Depreciation Total expenses \begin{tabular}{|rr|} \hline 1,333,640 & 1,215,125 \\ 182,400 & 182,115 \\ 8,150 & 9,712 \\ 81,228 & 82,893 \\ 145,610 & 157,125 \\ 84,500 & 82,725 \\ 86,500 & 112,150 \\ 201,300 & 225,000 \\ 13,515 & 8,525 \\ 111,453 & 118,552 \\ \hline 2,248,296 & 2,193,922 \\ \hline \end{tabular} Income Before Income Tax Income tax Net income 353,33022,000331,330 2018 2017 Assets Current \begin{tabular}{lrr} Cash & 42,050 & 62,725 \\ Accounts recelvable (net) & 122,500 & 157,000 \\ Inventory & 218,540 & 230,735 \\ Loans recelvable & 105,000 & 110,000 \\ Prepaid and other assets & 75,000 & 85,000 \\ \cline { 2 - 3 } & 563,090 & 645,460 \end{tabular} Uablities Current \begin{tabular}{lrr} Accounts gayable & 112,500 & 68,750 \\ Accrued liabilities & 42,125 & 84,195 \\ Deferred revenue & 165,630 & 183,725 \\ Current portion of loan & 200,265 & 210,500 \\ Current portion of mortgage & 33,110 & 35,175 \\ \hline & 553,630 & 582,345 \end{tabular} Long term loan Long term mortgage Total liabllities Shareholder's nquity Select one or more: a. The amount of gross profit made per dollar of sales is increasing. b. Arnett Ltd. purchased long-term assets in both 2017 and 2018 c. If industry standard for inventory turnover is 36 days, Arnett's turnover is healthy in 2018 d. Arnett's cash flow from operating activities is very healthy e. Cash flow from financing activities indicates the company may be in financlal trouble f. If the target debt ratio is 0.50 , Arnett's solvency is very healthy 9. Arnett is spending much less on occupancy costs to generate a doliar in sales revenue in 2018 , than it did in 2017 h. Arnett appears to be struggling to repay long-term debt

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