Bricker Frames has asked you to determine whether the company’s ability to pay current liabilities and total liabilities improved or deteriorated during 2023. To answer this question, compute these ratios for 2023 and 2022, using the following data:

a. Current ratiob. Acid-test ratioc. Debt ratiod. Times-interest-earned ratio

Transcribed Image Text:

1. 2 Cash 3 Short-term investments 4 Net receivables 5 Inventory 6 Total assets Total current liabilities 7 8 Long-term notes payable 9 Income from operations 10 Interest expense 11 |$ $ $ $ S $ $ $ $ 2023 61,500 $ 26,000 $ 126,560 S 236,300 $ 564,000 $ 278,000 $ 20,920 $ 166,110 $ 49,000 $ C 2022 47,000 0 118,240 271,320 492,000 204,000 46,920 159,580 39,500