Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Looking back over the past few years, it is clear that Nicole Mackisey has accomplished a lot running her business, Nicole's Getaway Spa (NGS). Nicole

image text in transcribed
image text in transcribed
image text in transcribed
Looking back over the past 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 Balance Sheet Cash Accounts Receivable, Net Inventory Prepaid Expenses Other Current Assets 2017 2016 $ 7,200 $4,7ees 2,25e 2,750 1,300 3,25e 800 1,150 350 408 2015 4,3ee 2, ese 1, Bee 380 3ee 11,90 69,000 12,25e 84, eee 8,75e 29, eee Total Current Assets Property and Equipment Total Assets $ 80,9ee $ 96,250 $ 37,750 urrent Liabilities Long-term Liabilities $ 8, Sees 8,500 $ 9,5ee 37,080 52,900 15, Bee 45,50 61, 4ee 24. See Total Liabilities 28,000 2,400 32,5ee 2,350 12,400 85e Contributed Capital Retained Earnings Total Shareholders. Equity Total Liabilities and Shareholders' Equity 35,400 34,85e 13,250 $ 8,98 96,250 $ 37,750 Income Statement Sales Revenue Cost of Goods Sold $ 85,00 $ 61,0 5 49, cee 68,00 50, see 37, see 17, Bee 4.5 10,50 2, See 11, See 7. See 12,500 1,250 3,60 1,85e Gross Profit Operating Expenses Income from Operations Interest Expense Income Before Income Tax Expense Income Tax Expense 11,25e -3.430 2,950 1,250 4,400 1,200 3, 2005 $ 7,8205 1,700 Net Income to 2 Required: 1-o. Calculate the gross profit percentage, return on equity, and asset turnover ratio for 2016 and 2017. (Round your answers to 2 decimal places.) 2017 2016 17.21% % Gross profit percentage Return on equity Asset turnover 23.40 times times 1-6. Was NGS more profitable in 2016 or 2017? O 2016 2017 2-. Calculate the current ratio and quick ratio for 2016 and 2017. (Round your answers to 2 decimal places.) 2016 2017 times Current ratio Quick ratio mes mes 2-e. Calculate the current ratio and quick ratio for 2016 and 2017. (Round your answers to 2 decimal places.) 2016 2017 ences times Current ratio Quick ratio times times times 2-b. Was NGS more liquid in 2016 of 2017? 2017 O 2016 3-a, Calculate the debt-to-assets ratio and times interest earned ratio for 2016 and 2017 (Round your answers to 2 decimal places) Debt-to-assets Times interest samed 2016 times times 2017 times times 3. b. Wes NGS more solvent in 2016 or 2017? 2017 O 2016 Prow

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Accounting

Authors: Floyd A Beams

4th Edition

0130101826, 978-0130101822

More Books

Students also viewed these Accounting questions