Problem 1-1 LO4 Selected financial information from the financial statements of Gravelbourg Ltd. for Years 5 through 7 is as follows: Year 5 Year 6 Year 7 Income before interest and taxes Net income $ 100,000 $ 111,000 $ 130,000 35,000 45,000 65,000 Current assets Total assets Current liabilities 520,000 560,000 595,000 1,460,000 1,305,000 1,550,000 370,000 390,000 450,000 Total liabilities 1,050,000 1,090,000 1,310,000 Shareholders' equity 410,000 215,000 240,000 Required Page 49 (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.