Use the Information That Follows Taken from Tyler Company's Financial

question 84

Essay

Use the information that follows taken from Tyler Company's financial statements for the years ending December 31, 2017 and 2016.
$\begin{array}{lc}\text { Balance Sheet Information }&2017&2016\\\text { Assets }\\ \text { Cash } & \$ 90&\$50 \\ \text { Accounts receivable } & 60&80 \\ \text { Inventory } & 40&80 \\\text { Land, building, and equipment } & \underline{230} & \underline{270}\\\text { Total Assets } & \underline{ \$ 420}& \underline{\$480} \\\end{array}$

$\begin{array}{lrr}\text { Liabilities and Shareholders' Equity }\\\text { Accounts payable } & \$ 5 & \$ 85 \\\text { Common stock } & 260 & 260 \\\text { Retained earnings } & \underline{155} & \underline{135 }\\\text { Total Liabilities \& Shareholders' Equity } & \$ \underline{420} & \$ \underline{480} \\\end{array}$

$\begin{array}{lrr}\text { Income Statement Information }\\ \text { Sale revenue } &\$850\\ \text { Cost of goods sold } & \underline{600}\\ \text {Gross profit } &\$250\\ \text { Operating expenses} & \underline{230}\\ \text {Net income } & \underline{\$20}\\\end{array}$



The industry in which Tyler operates has an average current ratio of 2.1 on December 31, 2017. Comment on Tyler's solvency compared to the industry average as measured by its current ratio.

---

Definitions:

Mass Transit

Public transportation systems designed to move large numbers of people efficiently across cities and other populated areas.

Social Stigma

The negative perception and discrimination associated with a particular circumstance, quality, or person, often based on stereotypes.

Mass Transit Systems

Public transportation networks designed to move large numbers of people efficiently through buses, trains, subways, and other forms of shared services.

Heat Island

An urban area that is significantly warmer than its surrounding rural areas due to human activities and modifications to the land surface.