Selected financial data for Changretta Inc. and Solomon Ltd. (in $ thousands) are presented below. Changretta Inc Solomon Ltd. Statement of Comprehensive Income (Loss) Total revenue $36.755 $36,333 Cost of sales 18,930 26,136 Gross profit 17,825 10,197 Operating expenses 17 110 8,076 Profit from operations 715 2.121 (36) 535 153 351 Interest expense (revenue) Other expenses Other non-operating income Proht before income tax Income tax expense Profit 436 949 2,022 325 627 $624 $1,395 Changretta Inc. Solomon Ltd. Balance Sheet Current assets $9.680 $10,838 Non-current assets 38,487 34,096 Total assets $48,167 $44,934 Current liabilities $4,958 $6,335 Non-current liabilities 4.766 4,217 Total liabilities 9,724 10,552 Shareholders equity 38,443 34,382 Total liabilities and shareholders equity $48.167 $44,934 Additional information: Average accounts receivable $1.413 $6179 Average inventories 3.398 3,676 Average total assets 45,412 45,651 Average total shareholders equity 34200 33.447 Changretta Inc. Solomon Ltd. Liquidity Ratios 1. Current ratio 2.0 1.7 2. Receivables turnover 26 times 5.9 times Inventory turnover 5.6 times 7.1 times 4. Operating cycle 79.6 days 1113.4 days Solvency Ratios 5. 5 Debt to total assets 9.9 % 9.4 % 6 Interest coverage times 4,8 times Profitability Ratios 7 Gross profit margin 48.5 96 28.1 8. Profit margin 1.7 % 3.3 % 9 Asset turnover 81 times 80 times 10. Return on assets 4 Solvency Ratios % 9.4 96 9.9 5. Debt to total assets 4.8 6. times times Interest coverage Profitability Ratios 7. Gross profit margin 48.5 % 28.1 % 8. Profit margin 17 56 3.B se 9. Asset turnover 81 times -80 times 10 Return on assets 14 9 31 % 11. Return on equity 18 % 42 %6