The financial information below was taken from the records of Lotechnic Enterprises. The company pays no dividends.

a. Compute the current ratio, the debt/equity ratio, and return on assets for each of the four years. Assume that the year-end balances in 2009 reflect the average balances during the year. Assume a tax rate of 30 percent.b. Prepare a common-size balance sheet for each of the four years.c. Use the statement of cash flows, and analyze the earning power and solvency positions of Lotechnic.

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2012 2011 2010 2009 S 31,000 S 35,000 Current assets Non-current assets S24,000 64,000 S8,000 S20,000 93,000 86,000 33.000 Total assets S128,000 SI17,000 553,000 2012 2011 2010 S 13,000 35,000 20,000 20,000 2009 S 25.000 40,000 S 8,000 S 30,000 40,000 Current liabilities Long-term liabilities Capital stock Retained earnings Total liabilities and shareholders' equity Net cash provided (used) by operating activities Net cash provided (used) by investing activities Net cash provided (used) by financing activities Net increase (decrease) 15,000 20,000 32.000 20,000 20,000 38,000 10.000 S 8,000 S128.000 SI17.000 553.000 S (2,000) S 3,000 S 6,000 S 7,000 (31,000) (10.000) (20,000) (12,000) 15,000 15,000 25,000 8,000 in cash S 3,000 S (2,000) S 3,000 S 5.000 24.000 S 5,000 21.000 5 4,000 14,000 S 2.000 13.000 Interest expense Net income