Brandy Pitts Winery requested that you determine whether the company’s ability to pay its current liabilities and long-term debts improved or deteriorated during 2010. To answer this question, compute the following ratios for 2010 and 2009:

(a) current ratio,

(b) quick ratio,

(c) debt ratio, and

(d) times-interest-earned ratio. Summarize the results of your analysis.

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Cash....... Short-Term Investments Accounts Receivable, Net.. Inventory........ Prepaid Expenses.. Total Assets Total Current Liabilities. Long-Term Liabilities.. Income From Operations. Interest Expense 2010 2009 $ 32,000 $ 45,000 35,000 130,000 142,000 340,000 360,000 15,000 12,000 580,000 560,000 220,800 245,600 24,200 29,400 185,000 179,000 42,000 44,000