Balance Sheet items 2018 2017

CURRENT ASSETS
Cash 456,500 222,400 Cash increase - due to no dividends paid
Receivables 3,936,400 3,320,000
Inventory 89,800 100,200
Other assets 1,169,500 934,300

Total current assets 5,652,200 4,576,900 Current ratio 2017:

Current ratio 2018:
LONG TERM ASSETS
Note Receivable 380,600 280,700 Some additional debt acquired in 2018
Equipment (net of depreciation) 975,000 1,017,800

Total long term assets 1,355,600 1,298,500

TOTAL ASSETS 7,007,800 5,875,400 6441600

LIABILITIES AND
STOCKHOLDERS' EQUITY Debt ratio 2017:
Debt ratio 2018:
CURRENT LIABILITIES
Accounts payable 2,783,100 2,805,700
Note payable (current maturities) 277,550 272,550
Other accrued liabilities 265,300 214,600

Total current liabilities 3,325,950 3,292,850

LONG TERM LIABILITIES

Notes payable (long term) 454,800 454,800
Long term accrued liabilities 389,550 320,250

Total long term liabilities 844,350 775,050

TOTAL LIABILITIES 4,170,300 4,067,900

STOCKHOLDERS' EQUITY
Common stock 450,000 450,000
Retained Earnings 2,387,500 1,357,500
Total stockholders' equity 2,837,500 1,807,500

TOTAL LIABILITIES AND

7,007,800 5,875,400
STOCKHOLDERS EQUITY
ease - due to no dividends paid in 2018

ratio 2017:
ratio 2018:

itional debt acquired in 2018

 Income Statement items 2018 2017

Service Contract Revenues 9,200,000 6,595,400

Service Contract Costs -6,503,100 -4,957,800

Gross Profit 2,696,900 1,637,600

General and Administrative Expenses -896,000 -756,000

Operating Income 1,800,900 881,600

Gain on sale of equipment 59,900 7,700

Interest expense -69,500 -70,800

Other expense -9,600 -63,100

Income before taxes 1,781,700 755,400

Taxes -451,700 -300,900

Net Income 1,330,000 454,500

Retained Earnings, Beginning Balance 1,057,500 1,053,000

2,387,500 1,507,500
Less: Dividends paid 0 -150,000

Retained Earnings, Ending Balance 2,387,500 1,357,500

 Answers/Comments

Increase in contracts

Gross profit margin 2017:

Gross profit margin 2018:

Increase in profit - see above comment

Increase in net income from 2017-2018

No dividend paid in 2018