The following financial information is for Sheridan Company. SHERIDAN COMPANY Balance Sheets December 31 Assets Cash Debt investments (short-term) Accounts receivable Inventory 2017 $ 72,000 54,000 104,000 230,000 22,000 134,000 261,000 $877,000 2016 $ 64,000 42,000 91,000 165,000 25,000 134,000 189,000 $710,000 Prepaid expenses Land Building and equipment (net) Total assets Liabilities and Stockholders' Equity Notes payable Accounts payable Accrued liabilities Bonds payable, due 2020 Common stock, $10 par Retained earnings Total liabilities and stockholders' equity $171,000 65,000 41,000 249,000 207,000 144,000 $877,000 $108,000 50,000 41,000 172,000 207,000 132,000 $710,000 SHERIDAN COMPANY Income Statements For the Years Ended December 31 2017 2016 Sales revenue Cost of goods sold Gross profit Operating expenses Net income $896,000 648,000 248,000 189,000 $ 59,000 $796,000 574,000 222,000 165,000 $ 57,000 Additional information: 1. Inventory at the beginning of 2016 was $115,000. 2. Accounts receivable (net) at the beginning of 2016 were $88,000. 3. Total assets at the beginning of 2016 were $639,000. 4. No common stock transactions occurred during 2016 or 2017. 5. All sales were on account. 2017 2016 % Change LIQUIDITY Current ratio Accounts receivables turnover times 8.89 times Inventory turnover 2 3.28 times 4.07 times -19 2017 2016 % Change PROFITABILITY Profit margin 6.58% 7.16 % x= Asset turnover 1.11 times 1.2 times Return on assets 8.43 % Earnings per share 2.75