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

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.