CC13-1 Evaluating Profitability, Liquidity, and Solvency [LO4, L05) Looking back over the past 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. Balance Sheet 2017 2016 2015 Cash Accounts Receivable, Net $ 8,000 $ 5,500 $ 5,100 2,650 3,150 Inventory 2,450 1,460 3,650 2,128 Prepaid Expenses 880 1,310 460 Other Current Assets 430 480 460 Total Current Assets 13,420 14,090 10,590 Property and Equipment 77,000 92,000 32,200 Total Assets $ 98,420 $ 106,090 $ 42,790 Current Liabilities $ 9,300 $ 9,300 $ 10,300 Long-term Liabilities 40,200 57,540 16,600 Total Liabilities 49,500 66,840 26,900 Contributed Capital 32,800 36,500 14,800 Retained Earnings 8,120 2.750 1,090 Total Shareholders' Equity 40,920 39,250 15,890 Total Liabilities and Shareholders' Equity $ 90,420 $ 106,090 $ 42,790 Income Statement Sales Revenue Cost of Goods Sold $ 93,000 $ 69,000 5 57,000 72,800 54,500 41,500 20,200 5,300 14,500 3,300 15,500 8,300 Gross Profit Operating Expenses Income from Operations Interest Expense 7,200 14,900 1,658 11,200 4,400 1,450 13,250 6,800 5,750 Income Before Income Tax Expense 32,800 8,120 36,500 2,750 14,800 1,990 Contributed Capital Retained Earnings Total Shareholders' Equity I Total Liabilities and Shareholders' Equity 40,920 39,250 15,890 $ 90,420 $ 106,090 $ 42,790 $ 93,800 $ 69,080 $ 57,000 72,800 54,500 41,500 20,290 5,300 14,580 3,300 15,500 8,300 Income Statement Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Income from Operations Interest Expense Income Before Income Tax Expense Income Tax Expense Net Income 14,900 1,650 11,200 4,400 7,200 1,450 13,250 4,840 6,800 1,840 5,75e 2,450 $ 9,210 $ 4,960 $ 3,300 Required: 1-a. Calculate the gross profit percentage, return on equity, and asset turnover ratio for 2016 and 2017. (Round your answers to 2 decimal places.) Gross profit percentage Return on equity Asset turnover 2016 21.01% 17.99% 2017 21.72% 22.98% times times