What choices are true: a. Sales and gross profit are trending on opposite directionsb. There are clear indications that the company is struggling to pay its current liabilities in 2018, compared to 2017c. Cash from financing supports the same conclusion as the debt ratio in 2018 d. Cash flow from operations and liquidity are both unhealthy in 2018e. Gross profit margin has decreased nearly 9% and profit margin has decreased nearly 4% from 2017 to 2018 f. The company has significant problems collecting accounts receivable in 2018, if their goal is 90 days g. Cash from investing indicates that the company could be pursuing growth in 2018 h. The company is more risky in 2018, based on solvency

choices decrease your score. Therefore I recommend that you do not guess.) 2018 2017 Sales $265,000 $220,000 Assets Cash $42,000 $71,000 Cost of goods sold 116,000 77,000 Accounts receivable (net) 53,000 29,000 Gross profit 149,000 143,000 Inventory 25,000 20,000 Salaries 72,000 68,000 Total current assets 120,000 120,000 Depreciation 20,000 23,000 Property, plant, and equipment 325,000 300,000 Other operating expenses 31,000 22,000 Accumulated depreciation -170,000 -150,000 Total operating expenses 123,000 113,000 PPE (net) 155,000 150,000 Net income $26,000 $30,000 Total assets $275,000 $270,000 Liabilities and Shareholders' Equity Cash from operating activities S 7,000 Current liabilities $20,000 $30,000 Cash from investing activities -$ 25,000 Long-term interest free loan 80,000 90,000 Total liabilities Cash from financing activities -S 11,000 100,000 120,000 Share capital 100,000 100,000 Retained earnings 75,000 50,000 Total equity 175,000 150,000 Total liabilities and shareholders' equity $275,000 $270,000