1. Calculate the Return on Asset for 2016 and 2017.

2. Calculate the Return on Equity for 2016 and 2017.

3, Calculate the Net Profit Margin for 2016 and 2017.

4. How would creditors, owners and managers feel about the profitability of Crystal Palace? Why?

Crystal Palace Beach Resort Financial Statements for 2016 and 2017 Balance Sheets 2016 2017 Current Assets Cash 57,600 52,000 Accounts Receivable 351,200 402,000 715,200 1,124,000 836 000 1,290,000 Inventories Total current assets Fixed Assets Property 200,000 230,000 Equipment 144,800 130,800 360,800 1,650,800 Total fixed assets 344,800 Total Assets 1,468,800 Liabilities and Equity Current Liabilities Accounts Payable 145,600 175,200 Notes Payable 200,000 225,000 Accruals 136,000 140,000 Total Current Laibilities 481,600 540,200 Long-term debt 323,432 805,032 424,612 964,812 Total Liabilities Owners' Equity Common stock 460,000 460,000 Retained earnings 203,768 225,988 Total Equity 685,988 663,768 Total Liabilities and Equity 1,468,800 1,650,800 Income Statements Sales 3,432,000 3,850,000 Cost of goods sold 3,250,000 2,864,000 568,000 600,000 Gross Profit Other Expenses 340,000 430,300 20,000 Depreciation 18,900 Earnings before Interest and Taxes 149,700 209,100 Interest expense 62,500 76,000 Earnings before Taxes 146,600 73,700 Taxes 58,640 29,480 87,960 Net Income 44,220