Selected financial information from the financial statements of GravelBourg Ltd. for Years 5 through 7 is as follows:

Required 

(a) Calculate the current ratio, debt-to-equity ratio, return on average assets, and return on average equity for Year 6 and Year 7. 

(b) Explain whether Gravelbourg’s liquidity, solvency, and profitability look better or worse in Year 7 compared to Year 6.  

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Income before interest and taxes Net income Current assets Total assets Current liabilities Total liabilities Shareholders' equity Year 5 $ 100,000 35,000 520,000 1,460,000 370,000 1,050,000 410,000 Year 6 $ 111,000 45,000 560,000 1,305,000 390,000 1,090,000 215,000 Year 7 $ 130,000 65,000 595,000 1,550,000 450,000 1,310,000 240,000