Excerpts from the financial statements of Marley and Thomas are provided below. 1997 1996 1995 Balance Sheet

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Excerpts from the financial statements of Marley and Thomas are provided below. 1997 1996 1995 Balance Sheet Current assets $ 14,000 $13,000 $ 9,000 Long-term assets 98,000 62,000 52,000 Current liabilities 14,000 12,000 7,000 Long-term debt 30,000 20,000 15,000 Stockholders’ equity 68,000 43,000 39,000 Income Statement Sales $ 97,000 $86,000 $ 82,000 Net income 18,000 16,000 25,000 REQUIRED: Review this information, calculate relevant ratios from Figure 3-16, and explain why Marley and Thomas appears to be a good or poor investment.

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