1 Balance Sheet 2017 Income Statement 2016 2016 2017 665 594 43,700 40,694 609 570 34,086 34,281 1,140 Assets Cash and securities Accounts receivable Inventories Total current assets Net fixed assets 996 3,933 Net sales Cost of good sold Depreciation EBIT Interest expense Tax (30%) 3,663 2,375 2,199 5,681 2,750 7,125 7,016 139 150 9,215 1,663 780 Net Income 3,879 1,820 1,258 288 Total assets 9,500 Liabilities and Owners' Equity Accounts payable 1,235 Short-term notes 285 Total current liabilities 1,520 Long-term debt 1,156 Common stock 1,501 Retained earnings 5,323 1,546 1,246 962 5,461 Total liabilities and owners' equity 9,500 9,215 Given the financial statements for SW Inc. above, comment on the change in cash ratio over the past two years? Their cash ratio is unchanged indicating a higher level of liquidity Their cash ratio has increased indicating a lower level of liquidity Their cash ratio has declined indicating a lower level of liquidity Their cash ratio is unchanged indicating a lower level of liquidity Their cash ratio has increased indicating a higher level of liquidity