The following are Cohen Company's comparative financial statements for 2017, 2016, and 2015:

Comparative Income Statements

	For Years Ended December 31,
Comparative Income Statements	2017	2016	2015
Sales (net)	$102,200	$ 91,500	$ 81,700
Cost of goods sold	(61,100)	(52,800)	(47,150)
Gross profit	41,100	38,700	34,550
Selling expenses	(11,400)	(10,000)	(8,900)
Administrative expenses	(8,700)	(7,843)	(6,950)
Interest expense	(3,000)	(4,000)	(4,000)
Total expenses	(23,100)	(21,843)	(19,850)
Income before income taxes	18,000	16,857	14,700
Income tax expense	(5,400)	(5,057)	(4,410)
Net income	$ 12,600	$ 11,800	$ 10,290
Earnings per share	?	?	?

	For Years Ended December 31,
Comparative Retained Earnings Statements	2017	2016	2015
Beginning retained earnings	$28,800	$20,800	$14,310
Add: Net income	12,600	11,800	10,290
	$41,400	$32,600	$24,600
Less: Dividends distributed	(4,410)	(3,800)	(3,800)
Ending retained earnings	$36,990	$28,800	$20,800

	December 31,
Comparative Balance Sheets	2017	2016	2015
Cash	$ 4,200	$ 4,000	$ 4,100
Receivables (net)	7,600	7,000	6,200
Inventories	9,800	9,000	8,600
Noncurrent assets	119,390	112,000	107,100
Total Assets	$140,990	$132,000	$126,000
Current liabilities	$ 12,000	$ 10,000	$ 12,000
Bonds payable, 10%	30,000	40,000	40,000
Common stock, $2 par	8,400	7,600	7,600
Additional paid in capital	53,600	45,600	45,600
Retained earnings	36,990	28,800	20,800
Total Liabilities and Shareholders' Equity	$140,990	$132,000	$126,000

Additional information: Credit sales were 65% of net sales in 2016 and 60% in 2017. At the beginning of 2017, 400 shares of common stock were issued, the first sale of stock in several years.

Cohen is concerned. Although it increased the dividends paid per share by 5% in 2017 and its 2017 net income is higher than 2016 net income, the market price of its common stock dropped from $22 per share at the beginning of 2017 to $21 per share at year-end.

Required:

1. For 2015, 2016, and 2017, prepare rate of change analysis for the Cohen Company using a year-to-year approach. Use a minus sign to enter any subtractive numbers and any decreases in the year-to-year columns. If an amount is zero, enter "0". Round all percentages to one decimal place. Do not enter the percentage sign. For example: 12.37 would be entered as 12.4. Round earnings per share computations to two decimal places.

COHEN COMPANY
Comparative Income Statements
Rate of Change Analysis
	For Year Ended December 31 2017	For Year Ended December 31 2016	For Year Ended December 31 2015	Year-to-Year Increase (Decrease) 2016 to 2017 Amount	Year-to-Year Increase (Decrease) 2016 to 2017 %	Year-to-Year Increase (Decrease) 2015 to 2016 Amount	Year-to-Year Increase (Decrease) 2015 to 2016 %
Sales (net)	$	$	$	$		$
Cost of goods sold
Gross profit	$	$	$	$		$
Selling expenses
Administrative expenses
Interest expense
Total expenses	$	$	$	$		$
Income before income taxes	$	$	$	$		$
Income tax
Net income	$	$	$	$		$
Earnings per share	$	$	$	$		$

For 2015, 2016, and 2017, prepare horizontal analysis for the Cohen Company using a year-to-year approach. If an amount is zero, enter "0". Use the minus sign to enter any subtractive numbers and any decreases in the year-to-date columns. Round all percentages to one decimal place. Do not enter the percentage sign. For example: 12.37 would be entered as 12.4.

COHEN COMPANY
Comparative Retained Earnings Statements
(Horizontal Analysis)
	For Year Ended December 31 2017	For Year Ended December 31 2016	For Year Ended December 31 2015	Year-to-Year Increase (Decrease) 2016 to 2017 Amount	Year-to-Year Increase (Decrease) 2016 to 2017 %	Year-to-Year Increase (Decrease) 2015 to 2016 Amount	Year-to-Year Increase (Decrease) 2015 to 2016 %
Beginning retained earnings	$	$	$	$		$
Add: Net income
	$	$	$	$		$
Less: Dividends
Ending retained earnings	$	$	$	$		$

For 2015, 2016, and 2017, prepare horizontal analysis for the Cohen Company using a year-to-year approach. If an amount is zero, enter "0". Use the minus sign to enter any subtractive numbers and any decreases in the year-to-date columns. Round all percentages to one decimal place. Do not enter the percentage sign. For example: 12.37 would be entered as 12.4.

COHEN COMPANY
Comparative Balance Sheets Rate of Change Analysis
December 31, 2017, 2016, and 2015
	December 31 2017	December 31 2016	December 31 2015	Year-to-Year Increase (Decrease) 2016 to 2017 Amount	Year-to-Year Increase (Decrease) 2016 to 2017 %	Year-to-Year Increase (Decrease) 2015 to 2016 Amount	Year-to-Year Increase (Decrease) 2015 to 2016 %
Cash	$	$	$	$		$
Receivables (net)
Inventories
Noncurrent assets
Total assets	$	$	$	$		$
Current liabilities	$	$	$	$
Bonds payable, 10%
Common stock, $2 par
Premium on common stock
Retained earnings
Total liabilities & stockholders' equity	$	$	$	$		$

2. For 2016 and 2017, compute the following ratios:

		2017		2016
a. Current		times (Round to one decimal place)		times (Round to one decimal place)
b. Inventory turnover		times (Round to one decimal place)		times (Round to one decimal place)
c. Receivables turnover		times (Round to two decimal places)		times (Round to two decimal places)
d. Net profit margin		% (Round to two decimal places)		% (Round to two decimal places)
e. Earnings per share		$(Round to the nearest cent)		$(Round to the nearest cent)
f. Return on total assets		% (Round to one decimal place)		% (Round to one decimal place)
g. Return on common equity		% (Round to one decimal place)		% (Round to one decimal place)
h. Debt-to-assets		%(Round to one decimal place)		% (Round to one decimal place)

3. All of the following are possible reasons the market price per share decreased in 2017 except: