Looking back over the last few years it is clear that Nicole Mackisey has accomplished a lot running her business Nicole€™s Getaway Spa (NGS). Nicole is curious about her company€™s performance as she compares its financial statements.

Required:
1. Was NGS more profitable in 2016 or 2015? Use the gross profit percentage, return on equity, and fixed asset turnover ratio to help in making a decision (round each ratio to two decimal places).
2. Was NGS more liquid in 2016 or 2015? Use the current ratio to help in making a decision (round each ratio to two decimal places).
3. Was NGS more solvent in 2016 or 2015? Use the debt- to- assets ratio and times interest earned ratio to help in making a decision (round each ratio to two decimal places).

2016 2015 2014 Balance Sheet Cash Accounts Receivable, Net Inventory Prepaid Expenses Other Current Assets $6,700 4200 3800 2000 500 1800 1.200 3,000 1,600 200 200 750 050 350 300 Total Current Assets Property and Equipment. Net 10,950 11100 7.600 64.000 79.000 27.000 $74.950 $90,100 34.600 $ 8,000 8,000 ,000 35,000 5000 14.000 43.000 58,00O 23,000 25,000 300CO 10,900 700 31.950 100 ,600 Total Liabilities and Stockholders Equity $74.950 $90 100 $34600 Total Assets Current Liabilities Long-term Liabilities Total Liabilities Common Stock Retained Earnings 6,950 2. 100 Total Stockholders Equity Incorne Statement Sales Revenue Cost of Goods Sold Gross Profit $80,000 $56000 $44000 65,00 48,000 35000 9,000 7,000 2000 800 1,200 500 $6.950 2100 700 15,000 4,000 11.00 1.000 10,000 8,000 es Income from Operations Interest Expense Income before Income Tax Expense Income Tax Expense Net Income 3,100 2900 800