Presented Below Are the Condensed Balance Sheets of Fellsmere Corporation

Essay

Presented below are the condensed balance sheets of Fellsmere Corporation at December 31, 2017 and 2016.Net income for the years ending December 31, 2016 and 2015 is $346,000 and $109,000, respectively. $\begin{array}{lrr}&\text { December 31,2017 } & \text { December } \mathbf{3 1 , 2 0 1 6} \\\hline \text {Current assets }&\$ 2,228,186 & \$ 2,544,683 \\\text {Property, plant, \& equipment (net) }&530,589 & 376,647 \\\text {Intangibles and other assets }&131,206 & 118,121 \\\hline \text {Total assets }&\mathbf{\$ 2 , 8 8 9 , 9 8 1} & \mathbf{\$ 3 , 0 3 9 , 4 5 1}\\\\\text {Current liabilities }&\$ 1,429,674 & \$ 1,003,906 \\\text { Long-term obligations }&3,360 & 7,240 \\\text { Warranty and other liabilities }&112,971 & 98,081 \\\text {Total liabilities }&\$ 1,546,605 & \$ 1,109,227 \\\text {Stockholders' equity: }\\\text { Common stock } & \$ 1,566 & \$ 501,631 \\\text { Additional paid-in capital } & 365,986 & 799,483 \\\text { Retained earnings } & 980,509 & 634,509\\ \text {Accumulated other }\\ \text { comprehensive loss}&(4,085)&\$ 1,343,976\\ \text { Total stockhol ders' equity}&(5,489)&\$ 1,930,224\\\text {Total liabilities and stockholders' equity }&\$ 2,889,981& \$ 3,039,451\\\end{array}$ ​
-Read the information about Fellsmere Corporation.
Required:
(A) Did Fellsmere's current ratio increase or decrease from 2016 to 2017? Make any necessary calculations and explain your answer.Which financial statement users are most concerned with this ratio?
(B) The balance sheets show a large increase in retained earnings during 2017.Identify the possible reason(s) for this increase.