Financial information for Messersmith Company is presented below.

MESSERSMITH COMPANY Balance Sheets December 31
Assets		2017			2016
Cash		$ 119,700			$ 111,150
Short-term investments		88,920			68,400
Accounts receivable (net)		167,580			136,800
Inventory		213,750			230,850
Prepaid expenses		49,590			39,330
Land		222,300			222,300
Building and equipment (net)		307,800			299,250
		$1,169,640			$1,108,080
Liabilities and Stockholders Equity
Notes payable		$171,000			$171,000
Accounts payable		82,080			71,820
Accrued liabilities		85,500			68,400
Bonds payable, due 2020		256,500			256,500
Common stock, $10 par		342,000			342,000
Retained earnings		232,560			198,360
		$1,169,640			$1,108,080

MESSERSMITH COMPANY Income Statement For the Years Ended December 31
		2017				2016
Net sales			$1,453,500				$1,350,900
Cost of goods sold			1,060,200				983,250
Gross profit			393,300				367,650
Operating expenses			319,770				295,830
Net income			$ 73,530				$ 71,820

Additional information:

1.		Inventory at the beginning of 2016 was $201,780.
2.		Total assets at the beginning of 2016 were $1,077,300.
3.		No common stock transactions occurred during 2016 or 2017.
4.		All sales were on account. Accounts receivable, net at the beginning of 2016 were $150,480.
5.		Notes payable are classified as current liabilities. Indicate, by using ratios, the change in liquidity and profitability of Messersmith Company from 2016 to 2017.