The following items appear on the balance sheet of Figgins Company at the end of 2018 and 2019:
_____________________________________ 2019 _____________ 2018
Current assets .................................... $6,000 .................. $3,000
Long-term assets ................................. 7,000 ..................... 4,000
Current liabilities ................................. 2,000 ..................... 3,000
Long-term liabilities ............................. 7,000 .......................... 0
Stockholders' equity ........................... 4,000 ...................... 4,000
Required:
Between 2018 and 2019, indicate whether Figgins' debt to equity ratio increased or decreased. Also, indicate whether Figgins' current ratio increased or decreased. Interpret these ratios?