DEBT MANAGEMENT RATIOS Use Apparel’s financial statements in Exercise 12-65 to respond to the following requirements.

Required:

. Compute the five debt-management ratios for 2008 and 2009.

. Indicate whether the ratios have changed and whether the ratios suggest that Apparel is more or less risky for long-term creditors at December 31, 2009 than at December 31, 2008.

Exercise