Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby

Exercise 79

Evaluating Profitability, Liquidity, and Solvency
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 2014 or 2015 Use the gross profit percentage, return on equity, and asset turnover ratio to help in making a decision (round each ratio to two decimal places).
2. Was NGS more liquid in 2014 or 2015 Use the current ratio and quick ratio to help in making a decision (round each ratio to two decimal places).
3. Was NGS more solvent in 2014 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).