value: 10.00 points Summer Corporation has just completed its comparative statements for the year ended December 31, 2018. At this point, certain analytical and interpretive procedures are to be undertaken. The completed statements (summarized) are as follows: 2018 2017 Statement of Earnings Sales revenue Cost of sales $960,000a 540,000 $840,000 a 460,000 Gross margin Operating expenses (including interest on bonds) 420,000 342,000 380,000 336,000 Pretax earnings Income tax expense 78,000 24,000 44,000 12,000 Net earnings $ 54,000 $ 32,000 $ Statement of Financial Position Cash Accounts receivable (net) Merchandise inventory Prepayments Property, plant, and equipment (net) $ 13,600 84,000 50,000 400 260,000 7,800 56,000 40,000 200 240,000 $408,000 $344,000 Accounts payable Income taxes payable Bonds payable (5% interest rate) Common shares (40,000 shares) Retained earnings $ 34,000 2,000 140,000b 200,000 32,000d $ 36,000 4,000 100,000 200,000 4,000 $408,000 $344,000 a Credit sales totalled 40 percent of total sales. 6 $40,000 of bonds were issued on January 2, 2018. The market price of the stock at the end of 2018 was $18 per share. During 2018, the company declared and paid a cash dividend of $26,000. Required: 1. Compute appropriate ratios for 2018. (Use "365" days a year. Round intermediate calculations and other answers to 2 decimal places. Round percentage answers to 1 decimal place.) % Name and Computation of the 2018 Ratio Tests of profitability: Return on equity Return on assets Financial leverage percentage Earnings per share Profit margin Fixed asset turnover Tests of liquidity: Cash ratio per share Current ratio Quick ratio Receivables turnover Average collection period Inventory turnover Average days' supply of inventory Payables turnover Average age of payables Tests of solvency and equity position: Times interest earned Debt-to-equity ratio Market tests: Pricelearnings ratio Dividend yield ratio times days times days times days times %