Sales revenue Cost of goods sold Gross profit Selling, general, and administrative expenses Loss on sales of securities Income before interest and taxes Interest expense Income before taxes Income tax expense Net income Retained earnings, January 1, 2017 $542,825 (435,550) $107,275 $(65,830) (310) $41,135 (9,220) $31,915 (12,766) $19,149 58,615 $77,764 (12,149) $65,615 Dividends paid on common stock Retained earnings, December 31, 2017 December 31, 2016 Heartland Inc. Comparative Statements of Financial Position (thousands omitted) December 31, 2017 Assets Current assets: Cash $1,100 Marketable securities 1,240 Accounts receivable, net of allowances 15,695 Inventories 12,585 Prepaid items 395 Total current assets $31,015 Long-term investments $450 Property, plant, and equipment: $670 2,285 12,395 15,830 490 $31,670 $410 Land $31,915 $31,915 216,095 206,070 $237,985 $248,010 $279,475 $270,065 Buildings and equipment, net of accumulated depreciation Total property, plant, and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: Short-term notes Accounts payable Salaries and wages payable Income taxes payable Total current liabilities Long-term bonds payable Stockholders' equity: Common stock, no par Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $8,690 20,180 1,930 3,045 $33,845 $79,970 $12,735 14,315 2,435 1,950 $31,435 $79,970 $100,045 65,615 $165,660 $279,475 $100,045 58,615 $ 158,660 $270,065 Required: 1. Prepare a columnar report for the controller of Heartland Inc. comparing the industry averages for the ratios put ratios as of December 31, 2017, or for the year ending December 31, 2017, whichever is appropriate. Round each Heartland, Inc. Comparison to Industry Averages For the year ending December 31, 2017 Ratio Industry Average Heartland Inc. Current ratio 1.22 0.92 Acid-test (quick) ratio 0.75 0.53 Accounts receivable turnover 39.03 times 38.65 times X