Looking back over the last few years, it is clear that Nicole Mackisey has accomplished a lot running her business, Nicole’s Getaway Spa (NGS). Nicole is curious about her company’s performance as she compares its financial statements.

Required:

1. Was NGS more profitable in 2018 or 2017? Use the gross profit percentage, return on equity, and fixed asset turnover ratio to help in making a decision (round each ratio to two decimal places).
2. Was NGS more liquid in 2018 or 2017? Use the current ratio to help in making a decision (round each ratio to two decimal places).
3. Was NGS more solvent in 2018 or 2017? Use the debt-to-assets ratio and times interest earned ratio to help in making a decision (round each ratio to two decimal places).

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20 18 2017 2016 Balance Sheet $ 6,700 $ 4,200 2,500 $ 3,800 Cash Accounts Receivable, Net 2,000 1,800 Inventory Prepaid Expenses 1,200 750 3,000 1,600 1,050 200 Other Current Assets 300 350 200 Total Current Assets 10,950 11,100 7,600 Property and Equipment, Net 64,000 79,000 27,000 $74,950 $ 8,000 35,000 $ 90,100 $ 8,000 Total Assets $34,600 Current Liabilities $ 9,000 Long-term Llabilities 50,000 14,000 Total Liabilities 43,000 58,000 23,000 Common Stock 25,000 30,000 10,900 Retained Earnings 6,950 2,100 700 Total Stockholders' Equity Total Liabilities and Stockholders' Equity 31,950 $74,950 32,100 11,600 $ 90,100 $34,600 Income Statement $80,000 $56,000 48,000 8,000 Sales Revenue $44,000 Cost of Goods Sold 65,000 35,000 Gross Profit 15,000 9,000 Operating Expenses Income from Operations Interest Expense Income before Income Tax Expense Income Tax Expense 4,000 11,000 2,000 7,000 2,000 6,000 1,000 3,100 800 10,000 3,050 2,900 1,200 800 500 Net Income $ 6,950 $ 2,100 $ 700