1. Compute the debt ratio and the debt to equity ratio at May 31, 2018, for Accel's Companies.
2. Is Accel's ability to pay its liabilities strong or weak? Explain your reasoning.
Accel's Companies, a home improvement store chain, reported the following summarized figures:

Accel's has 10,000 common shares outstanding during 2018.

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ACCEL'S COMPANIES Income Statement Years Ended May 31, 2018 and 2017 2018 2017 $ 40,600 $ 40,500 Net Sales Revenue Cost of Goods Sold 30,600 28,400 570 Interest Expense 600 All Other Expenses 4,300 8,200 $ 7,300 $ 1,130 Net Income ACCEL'S COMPANIES Balance Sheet May 31, 2018 and 2017 Liabilities Assets 2018 2017 2018 2017 900 Total Current Liabilities 9,000 Long-term Liabilities 5,200 Total Liabilities $ 28,000 S 2,400 $ 13,200 Cash Short-term Investments 28,000 13,900 10,300 Accounts Receivable 7,500 23,500 41,900 Stockholders' Equity Merchandise Inventory 6,900 8,600 1,500 Common Stock 11,000 Other Current Assets 8,000 11,000 Total Current Assets 25,200 Retained Earnings 52,800 29,900 19,700 All Other Assets 30,000 29,000 Total Equity 40,900 30,700 $ 54,200 Total Liabilities and Equity Total Assets $ 82,800 S 82,800 $ 54,200