Presented below are the items included on the financial statements of We Just Might Make It Corporation for the year ending December 31, 2019 and 2018.

2019 2018

Sales revenue $2,300,000 $2,100,000

Cost of goods sold 1,000,000 1,300,000

General and administrative expenses 900,000 500,000

Other income 40,000 20,000

Income tax expense 150,000 125,000

Current Assets 525,000 475,000

Current Liabilities 631,500 465,000

Average Assets $1,000,000 $900,000

Required

Based on the above, determine the following (show your work for partial credit) for 2019 and 2018.

Briefly comment on the trend for #2, #4, and #5:

1. Net income
2. Return on Assets (ROA)
3. Gross Profit (in dollars)
4. Gross Profit % (gross profit dollars/sales revenue)
5. Current ratio (current assets/current liabilities)