The following financial information is for Oriole Company. ORIOLE COMPANY Balance Sheets December 31 Assets 2017 2016 Cash $ 70,000 $ 69,000 Debt investments (short-term) 51,000 40,000 Accounts receivable 107,000 92,000 Inventory 234,000 167,000 Prepaid expenses 26,000 23,000 Land 135,000 135,000 Building and equipment (net) 261,000 184,000 Total assets $884,000 $710,000 Liabilities and Stockholders' Equity Notes payable $172,000 $106,000 Accounts payable 66,000 52,000 Accrued liabilities 42,000 42,000 Bonds payable, due 2020 251,000 170,000 Common stock, $10 par 204,000 204,000 Retained earnings 149,000 136,000 Total liabilities and stockholders' equity $884,000 $710,000 ORIOLE COMPANY Income Statements For the Years Ended December 31 2017 2016 Sales revenue $882,000 $781,000 Cost of goods sold 641,000 574,000 Gross profit 241,000 207.000 Operating expenses 190,000 160,000 Net Income $ 51,000 $ 47,000 Additional information: 1. Inventory at the beginning of 2016 was $117,000. 2. Accounts receivable (net) at the beginning of 2016 were $88,000. 3. Total assets at the beginning of 2016 were $631,000. 4. No common stock transactions occurred during 2016 or 2017 5. All sales were on account. Your answer is partially correct. Try again. Compute the liquidity and profitability ratios of Oriole Company for 2016 and 2017. (Round current ratio, earnings per share and asset turnover to 2 decimal places, 1.83 and all other answers to I decimal place, ... 1.8 or 1.896. Il change is a decrease show the numbers as negative, e.g.-1.839 or (1.8396).) Compute the liquidity and profitability ratios of Oriole Company for 2016 and 2017. (Round current ratio, earnings per share and asset turnover to 2 decimal places, e. 1.83 and all other answers to 1 decimal place, e.g. 1.8 or 1.8%. 1/9 change is a decrease show the numbers as negative, e.g.-1.8.3% or (1.83%).) 2017 2016 % Change LIQUIDITY Current ratio 1.743 : 1 1.955:1 Accounts receivables turnover 8.86 times 8.68 times Inventory turnover 3.19 times 4.04 times 2017 2016 % Change PROFITABILITY Profit margin 5.78% 6.02 Asset turnover 1.11 times 1.16 times (4.31) Return on assets 6.4% (8.57 Earnings per share 23 Your answer is incorrect. Try again. The following are three independent situations and a ratio that may be affected. For each situation, compute the affected ratio (1) as of December 31, 2017, and (2) as of Decem 31, 2018, after giving effect to the situation. (Round all answers to 1 decimal places, e.. 1.8 or 1.84.11 % change is a decrease show the numbers as negative, e.. -1.83% or (1.8.3%).) Situation Ratio 1. 19,000 shares of common stock were sold at par on July 1, 2018. Net income for 2018 was $55,000. Return on common stockholders equity 2. All of the notes payable were paid in 2018. All other liabilities remained at the same levels as at December 31, 2018. At December 31, 2018, Debt to assets ratio total assets were $885,000. 3. The market price of common stock was $9 and $12 on December 31, 2017 and 2018, respectively. Net Income for 2018 was $55,000. Price-earnings ratio 2018 2017 % Change Return on common stockholders' equity 39.28% 25% Debt to assets ratio X % Price earnings ratio * times times Click if you would like to show Work for this question: Open Show Work