Debt Management Ratios}

Refer to Gorky's financial statements in Exercise 13-69.

\section*{Required:}

1. Compute the three debt management ratios for 2017 and 2018 (rounded to two decimal places).

2. CONCEPTUAL CONNECTION Indicate whether the ratios have changed and whether the


ratios suggest that Gorky is more or less risky for long-term creditors at December 31, 2018, than at December 31, 2017.

\section*{Exercise