9 CC13-1 Evaluating Profitability, Liquidity, and Solvency [LO 13-4, LO 13-5) 3.48 points 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 2018 2017 2016 Balance Sheet Cash Accounts Receivable, Net Inventory Prepaid Expenses Other Current Assets Total Current Assets Property and Equipment, Net Total Assets Current Liabilities Long-Term Liabilities Total Liabilities Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity Income Statement Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Income from Operations Interest Expense Income before Income Tax Expense Income Tax Expense Net Income $ 6,780 2,000 1,200 750 300 10,950 64,000 $ 74,950 $ 8,000 35,000 43,000 25,000 6,950 31,950 $ 74,950 $ 4,200 2,500 3,000 1,050 350 11, 100 79,000 $ 90, 100 $ 8,000 50,000 58,000 30,000 2,100 32,100 $ 90, 100 $ 3,800 1,800 1,600 200 200 7,600 27,000 $ 34,600 $ 9,000 14,000 23,000 10,900 700 11,600 $ 34,600 $80,000 65,000 15,000 4,000 11,000 1,000 10,000 3,050 $ 6,950 $ 56,000 48,000 8,000 2,000 6,080 3,100 2,900 800 $ 2,100 $44,000 35,000 9,000 7,880 2,000 800 1,200 500 $ 700 Required: 1-a. Calculate the gross profit percentage, return on equity, and fixed asset turnover ratio for 2018 and 2017. 1-b. Was NGS more profitable in 2018 or 2017? 2. Calculate the current ratio for 2018 and 2017. 3-a. Calculate the debt-to-assets ratio and times interest earned ratio for 2018 and 2017. 3-b. Was NGS more solvent in 2018 or 2017? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Req 2 Req 3A Req 3B Calculate the gross profit percentage, return on equity, and fixed asset turnover ratio for 2018 and 2017. (Round your answers to 2 decimal places.) Gross Profit Percentage Return on Equity Fixed Asset Turnover Ratio 2018 18.75% 21.70% 0.96 X 2017 14.29% 9.61% 0.89 X Reg 1A Reg 1B > Required: 1-a. Calculate the gross profit percentage, return on equity, and fixed asset turnover ratio for 2018 and 2017. 1-b. Was NGS more profitable in 2018 or 2017? 2. Calculate the current ratio for 2018 and 2017 3-a. Calculate the debt-to-assets ratio and times interest earned ratio for 2018 and 2017. 3-b. Was NGS more solvent in 2018 or 2017? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Reg 2 Req Req 3B ................................ Calculate the current ratio for 2018 and 2017. (Round your answers to 2 decimal places.). 2018 2017 Current Ratio 1.96 X 1.38 X Required: 1-a. Calculate the gross profit percentage, return on equity, and fixed asset turnover ratio for 2018 and 2017. 1-b. Was NGS more profitable in 2018 or 2017? 2. Calculate the current ratio for 2018 and 2017. 3-a. Calculate the debt-to-assets ratio and times interest earned ratio for 2018 and 2017. 3-b. Was NGS more solvent in 2018 or 2017? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Reg 2 Req Req 3B ........................................................................................................................................... Calculate the debt-to-assets ratio and times interest earned ratio for 2018 and 2017. (Round your answers to 2 decimal places.) 2018 0.57 11.00 2017 0.64 Debt to Assets Ratio Times Interest Earned Ratio 1.93 X
