The following financial information is for Caroline Company:

Additional information: Total assets at the beginning of 1997 were \(\$ 630,000\), current liabilities were \(\$ 155,000\), and total liabilities were \(\$ 305,000\). Cash provided by operations for 1998 was \(\$ 47,000\) and for 1997 was \(\$ 32,000\).
\section*{Instructions}
Indicate, by using ratios, the change in liquidity, solvency, and profitability of Caroline Company from 1997 to 1998.

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CAROLINE COMPANY Balance Sheet December 31 Assets Cash 1998 $ 70,000 1997 $ 65,000 Short-term investments Receivables (net) 45,000 40,000 94,000 90,000 Inventories 130,000 125,000 Prepaid expenses 25,000 23,000 Land 130,000 130,000 Building and equipment (net) 190,000 175,000 Total assets $684,000 $648,000