On December 1, 2015 John Trap created a new travel agency, Trap Adventures, Inc. providing exclusive adventure trips. The following transactions occurred during December 2015. (NOTE: There are no beginning balances this is a new company.)

Dec	1	John Trap invested $60,000 cash in the company for common stock.
	2	Purchase office equipment for $17,500 cash.
	2	The company rented furnished office space by paying $18,000 cash for the first six months (December 2015 May 2016) rent.
	3	The company purchased $1,500 of office supplies on account.
	10	The company paid $3,600 cash for the premium on a 12-month insurance policy.
	14	The company paid $10,750 cash for two weeks' salaries earned by employees.
	24	The company collected $54,000 cash on commissions from airlines on tickets obtained for customers.
	28	The company paid $12,125 cash for two weeks' salaries earned by employees.
	29	The company paid $350 cash for minor repairs to the company's computer.
	30	The company paid $450 cash for this month's telephone bill.
	30	Dividends of $3,000 cash were paid.

Adjustment Data:

One month's insurance coverage has expired.

The company occupied the office space for the month of December.

At the end of the month, $600 of office supplies are still available.

This month's depreciation on the computer equipment is $325.

Employees earned $525 of unpaid and unrecorded salaries as of month-end.

QUESTION

Discuss the financial position of Trap Adventures, Inc using the following ratios:

Current ratio

Return on equity

For each ratio, provide the calculation and an explanation of the meaning. Is this a positive or negative result for the Trap Adventures, Inc.?