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 2012 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 ofLotechnic.

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2014 31,000 86,000 2013 $24,000 64,000 $88,000 $13,000 35,000 20,000 20,000 2012 $20,000 33,000 $53,000 $8,000 15,000 20,000 10,000 2015 $35,000 93,000 $128,000 30,000 40,000 20,000 38,000 Cument assets Non-current assets $117,000 Total assets Curent liabilities Long-term liabilities Capital stock Retained earnings 25,000 40,000 20,000 32,000 Total liabilities and $128,000 $ (2,000 $ (10,000) 15,000 $117,000 $ 3,000 (20,000) 15,000 shareholders' equity $53,000 Net cash provided (used) by operating activities Net cash provided (used) by investing activities Net cash provided (used) by financing activities Net increase (decrease) 88,000 S 6,000 (31,000) 25,000 7,000 (12,000) 8,000 in cash Interest expense Net income $ 3,000 (2,000) $ 5,000 21,000 $5,000 24,000 4,000 14,000 03,000 $2,000 13,000