The following information relates to SE10-5 through SE10-7 SMITH & SONS, INC. Income Statement For Years Ended December 31, 2016 and 2015 (in millions) 2016 $10,000 (5,500) 2015 $9,500 (5,200 4,300 2,700 Net sales. ... Cost of goods sold........ Gross profit. ................... Selling and administrative expenses .. Income from operations .......... Interest expense.................. Income before income taxes ...... Income tax expense..... Net income....................... 1,600 4,500 (2,800) 1,700 (300) 1,400 (420) . . . . . . $ 980 250 1,350 (400 $ 950 SMITH & SONS, INC. Balance Sheet December 31, 2016 and 2015 (in millions) 2016 2015 $ $ 200 900 Assets Current assets Cash and cash equivalents ... Accounts receivable......... Inventory.................... Other current assets........... Total current assets ......... Property, plant, & equipment (net) ......... Other assets........ Total Assets ........... 400 800 650 250 500 2,100 400 2,000 2,600 5,700 $10,300 2,500 5,900 $10,500 continued 2015 SMITH & SONS, INC. Balance Sheet December 31, 2016 and 2015 (in millions) 2016 Liabilities and Stockholders' Equity Current liabilities. .. ............. $3,000 Long-term liabilities ......... 5,000 Total liabilities. ... 8,000 Stockholders' equity - common. ... 2,300 Total Liabilities and Stockholders' Equity ..... $10,300 $2,900 5,400 8,300 2,200 $10,500 SE10-5. 04 SE10-6. 04 Current Ratio Calculate the current ratio for Smith & Sons, Inc., for 2015 and 2016, and comment on the company's working capital position. Did the company's ability to pay its current liabilities improve over the two years? Quick Ratio Calculate the quick ratio for Smith & Sons, Inc., for 2015 and 2016, and comment on the company's working capital position. Did the company's ability to pay its current liabilities improve over the two years? terest-Earned Ratio Calculate the times-interest-earned ratio for Smith & Sons, Inc., for 2015 and 2016. and comment on the company's ability to pay its current interest payments Dide namnany's ability to pay its current interest charges improve? LO4 SE10-7