Refer to the information in Exercise 4-20. You, business analyst at Organic Catering, have been asked to calculate the debt to equity ratio (round to two decimal places). Provide your manager with comments on the ratio and the change from 2020 to 2021.

Exercise 4-20

The following is selected simplified information from Organic Catering?s balance sheet as at December 31, 2020 and December 31, 2021. You, business analyst at Organic Catering, have been asked to calculate the current ratio and the quick ratio (round to two decimal places). Provide your manager with comments on the ratios and the change from 2020 to 2021.

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(Numbers in thousands) 2021 2020 $ 6,501 $ 3,880 Cash 4,368 Accounts receivable 4,616 Notes receivable (current) 220 265 Inventories 123 137 Prepaid expenses and other (current) assets 190 695 Current liabilities 11,061 10,649 31,980 Total liabilities 31,376 Shareholders' equity 45,964 56,700