The Hudson Corporation reported the following data:

Year 3Year 2Year 1Equipment$18,000$16,000$14,000Accounts payable2,3008001,000Cash8,9009,3008,200Rent expense1,2001,4001,700Accounts receivable600400200Notes payable10,30012,10014,700Inventory2,0002,2002,400Revenues56,00052,00048,000Cost of goods sold20,00018,00016,000

Required:

1. On your own paper (or in Word or Excel), select the appropriate ratio(s) to assess the company's profitability and calculate for the years available; show your work.
2. Briefly explain why you selected the ratio(s) you did.
3. Briefly explain whether the company's profitability improved or worsened over the three year period.
4. Upload a picture of your paper (or a file if using Word or Excel).