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The following financial information is for Wildhorse Company. WILDHORSE COMPANY Balance Sheets December 31 Assets 2017 2016 Cash $ 70,000 $ 68,000 Debt investments (short-term)

The following financial information is for Wildhorse Company.

WILDHORSE COMPANY Balance Sheets December 31

Assets

2017

2016

Cash

$ 70,000

$ 68,000

Debt investments (short-term)

51,000

40,000

Accounts receivable

109,000

91,000

Inventory

231,000

167,000

Prepaid expenses

27,000

26,000

Land

134,000

134,000

Building and equipment (net)

264,000

186,000

Total assets

$ 886,000

$ 712,000

Liabilities and Stockholders Equity

Notes payable

$ 171,000

$ 109,000

Accounts payable

67,000

53,000

Accrued liabilities

41,000

41,000

Bonds payable, due 2017

250,000

170,000

Common stock, $10 par

206,000

206,000

Retained earnings

151,000

133,000

Total liabilities and stockholders equity

$ 886,000

$ 712,000

WILDHORSE COMPANY Income Statements For the Years Ended December 31

2017

2016

Sales revenue

$ 899,000

$ 798,000

Cost of goods sold

650,000

575,000

Gross profit

249,000

223,000

Operating expenses

192,000

168,000

Net income

$ 57,000

$ 55,000

Additional information:

1. Inventory at the beginning of 2016 was $ 117,000.
2. Accounts receivable (net) at the beginning of 2016 were $ 90,000.
3. Total assets at the beginning of 2016 were $ 634,000.
4. No common stock transactions occurred during 2016 or 2017.
5. All sales were on account.

(a1) Compute the liquidity and profitability ratios of Wildhorse Company for 2016 and 2017. (Round all answers to 2 decimal places, e.g. 1.83 or 1.83%. If % change is a decrease show the numbers as negative, e.g. -1.83% or (1.83%).)

2016

2017

% Change

LIQUIDITY

Current ratio

enter the current ratio

:1

enter the current ratio

:1

enter percentages

%

Accounts receivables turnover

enter accounts receivables turnover in times

times

enter accounts receivables turnover in times

times

enter percentages

%

Inventory turnover

enter inventory turnover in times

times

enter inventory turnover in times

times

enter percentages

%

2016

2017

% Change

PROFITABILITY

Profit margin

enter percentages

%

enter percentages

%

enter percentages

%

Asset turnover

enter asset turnover in times

times

enter asset turnover in times

times

enter percentages

%

Return on assets

enter percentages

%

enter percentages

%

enter percentages

%

Earnings per share

$ enter a dollar amount

$ enter a dollar amount

enter percentages

%

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