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

	2015			2014			2013
Balance Sheet
Cash	$	6,700		$	4,200		$	3,800
Accounts Receivable, Net		2,000			2,500			1,800
Inventory		1,200			3,000			1,600
Prepaid Expenses		750			1,050			200
Other Current Assets		300			350			200
Total Current Assets		10,950			11,100			7,600
Property and Equipment, Net		64,000			79,000			27,000
Total Assets	$	74,950		$	90,100		$	34,600
Current Liabilities	$	8,000		$	8,000		$	9,000
Long-term Liabilities		35,000			50,000			14,000
Total Liabilities		43,000			58,000			23,000
Contributed Capital		25,000			30,000			10,900
Retained Earnings		6,950			2,100			700
Total Stockholders Equity		31,950			32,100			11,600
Total Liabilities and Stockholders Equity	$	74,950		$	90,100		$	34,600
Income Statement
Sales Revenue	$	80,000		$	56,000		$	44,000
Cost of Goods Sold		65,000			48,000			35,000
Gross Profit		15,000			8,000			9,000
Operating Expenses		4,000			2,000			7,000
Income from Operations		11,000			6,000			2,000
Interest Expense		1,000			3,100			800
Income before Income Tax Expense		10,000			2,900			1,200
Income Tax Expense		3,050			800			500
Net Income	$	6,950		$	2,100		$	700

Required:

1-a.

Calculate the gross profit percentage, return on equity, and asset turnover ratio for 2014 and 2015.

	2014	2015
Gross Profit Percentage
Return on Equity
Asset Turnover Ratio

1-b.	Was NGS more profitable in 2014 or 2015?

2014

2015

2-a.

Calculate the current ratio and quick ratio for 2014 and 2015.

	2014	2015
Current Ratio
Quick Ratio

2-b.	Was NGS more liquid in 2014 or 2015?

2014

2015

3-a.

Calculate the debt-to-assets ratio and times interest earned ratio for 2014 and 2015.

	2014	2015
Debt to Assets
Times Interest Earned

3-b.	Was NGS more solvent in 2014 or 2015?

	2014
	2015