Selected ratios for Giasson Corporation are as follows:

Instructions
(a) Identify if the change in each value or ratio is an improvement or deterioration between (1) 2010 and 2011, and (2) 2011 and 2012.
(b) Briefly discuss the change in Giasson's liquidity, solvency, and profitability over the three-year period.

Transcribed Image Text:

2012 2011 2010 Working capital Current ratio Debt to total assets Earnings per s Price-earnings ratio $47,000 1.5:1 25.4% $0.86 4.7 times $53,000 1.7:1 25.5% $1.29 5.1 times $50,000 2.0:1 20.0% $1.00 5.5 times hare