The following information has been taken from the financial statements of Ivory Inc.
	Ivory Inc.
	Current Assets, December 31, 2019		$ 185,000
	Total Assets, January 1, 2019		$ 520,000
	Total Assets, December 31, 2019		$ 595,000
	Current Liabilities, December 31, 2019		$ 85,000
	Total Liabilities, December 31, 2019		$ 195,000
	Stockholders' Equity, January 1, 2019		$ 310,000
	Stockholders' Equity, December 31, 2019		$ 450,000
	Net Sales		$ 940,000
	Depreciation Expense		$ 15,000
	Interest Expense		$ 21,000
	Income Tax Expense		$ 24,000
	Net Income		$ 45,000
Part a) Given the data for Ivory Inc., calculate the following ratios for 2019 (round to two decimal places). The company's ratios for 2018 are given for comparison.
	Ratio		2018
	Current Ratio		3.5
	Times Interest Earned Ratio		5.40
	Debt-to-Equity Ratio		25.00%
	Return on Assets		12.50%
	Return on Equity		20.20%
	Net Profit Margin		8.60%
	Ratio		2019
	Current Ratio
	Times Interest Earned Ratio
	Debt-to-Equity Ratio
	Return on Assets
	Return on Equity
	Net Profit Margin
Part b) Using 2019 as a comparison, discuss whether the company improved or deteriorated in its ability to (i) pay current liabilities as they come due, (ii) meet its long-term debt obligations and (iii) profitability. Be sure to make reference to specific ratios in your answers.
i
ii
iii