The following information is taken from the 2017 annual report of Metlock, Inc. Metlock's fiscal year ends December 31 of each year, Metlock's December 31, 2017, balance sheet is as follows 3490 Metlock Inc Balance sheet December 31, 2017 Assets Cash Inventory Total current assets Plant and equipment Accumulated depreciation Total assets Liabilities Bonds payable (net of discount) Stockholders' equity Common stock Retained earnings Total liabilities and stockholders' equity 1.700 2.190 2.000 (1601 4,030 $1.426, $4.030 Note X: Long Term Debt: On January 1, 2016. Metlock issued bonds with face value of $1.500 and a coupon rate equal to 10. The bonds were issued to yield 12% and mature on January 1, 2021 Additional information concerning 2018 is as follows: 1. Sales were $3.200, all for cash. 2. Purchases were $1,900,all paid in cash 3. Salaries were $660, all paid in cash 4. Property, plant, and equipment was originally purchased for $2.000 and is deprecated straight-line over a 25-year life with no salvage value 5. Ending inventory was $2.100. 6. Cash dividends of $110 were declared and paid by Metlock. 8. The market rate of interest on bonds of similar risk was 12 during all of 2018 9. Interest on the bonds is paid semiannually each June 30 and December 31 2 Purchases were $1,900,all paid in cash. 3. Salaries were $660, all paid in cash. 4. Property, plant, and equipment was originally purchased for $2,000 and is deprecated straight line over a 25 year life with no salvage value. 5. Ending inventory was $2,100. 6. Cash dividends of $110 were dedared and paid by Metlock. 7. Ignore taxes. 8. The market rate of interest on bonds of similar risk was 12% during all of 2018 9. Interest on the bonds is paid semiannually each June 30 and December 31. Prepare an income statement for the year ending December 31, 2018. Assume semiannual compounding of the bond interest. METLOCK, INC. Income Statement e Textbook and Media List of Accounts Prepare a balance sheet for Metlock, Inc. at December 31, 2018 Assume semiannual compounding of the bond interest. Current A bsonderful METLOCK, INC. Balance Sheet Liabilities and Stockholders' Equity Compute debt to assets ratio and times interest earned ratio for 2017 and 2018. Metlock's net income in 2017 was $490 and intereste rise was $169. Round answers to 2 decimal places, 3273.) 2018 Debt to asset ratio Times interest earned ratio Has Metlock's solvency changed much from 2017 to 2018? e Textbook and Media List of Accounts