\begin{tabular}{|c|c|c|c|c|} \hline OtegoIncomeStFortheYearEnde & IncatedD & nent & & \\ \hline (in thous & an & & & \\ \hline & & 203 & 202 & 201 \\ \hline Revenue & & & & \\ \hline Service revenue & $ & 100.8$ & 90.6$ & 64.6 \\ \hline Expenses & & & & \\ \hline Salary & & 60.4 & 57.8 & 44.5 \\ \hline Rent & & 18.3 & 16.6 & 12.6 \\ \hline Supplies & & 4.6 & 3.6 & 2.4 \\ \hline Utilities & & 4.9 & 4.5 & 4.4 \\ \hline Depreciation & & 5.5 & 3.5 & 2.5 \\ \hline Total expenses & & 93.7 & 86.0 & 66.4 \\ \hline Income (loss) before taxes ... & & 7.1 & 4.6 & (1.8) \\ \hline Income tax expense . & & 2.5 & 1.9 & 0.0 \\ \hline Net income (loss) ... & $ & =$4.6 & 2.7$ & (1.8) \\ \hline \end{tabular} Requirement 3. Evaluate each ratio and determine if the ratio has improved or deteriorated over the three years. Explain what the changes mean. In this step, evaluate the current ratio. The current ratio between 201 and 202 and between 202 and 203. This means that Otego Inc. had cash to pay its accounts payable and salarie payable every year. In 20X3, the current ratio is and indicates that Otego can pay its debts. Now, evaluate the debt ratio. (Round the percentages to the nearest tenth percent, X.X%.) Otego financed what percent of its assets with debt in 20X1? Otego financed what percent of its assets with debt in 20X3? Complete the following sentences. The debt ratio has over the three years. The debt ratio as of December 31,203, is if the company needs to borrow to finance more equipment or expand its office space. Otego Inc. Balance Sheet As at December 31 (in thousands) 203202201 Assets Current assets \begin{tabular}{|c|c|c|c|c|} \hline Cash.... & $ & 3.4$ & 1.4$ & 1.2 \\ \hline ccounts receivable. & & 8.6 & 5.5 & 4.2 \\ \hline Total current assets & & 12.0 & 6.9 & 5.4 \\ \hline urniture & & 16.4 & 10.0 & 3.5 \\ \hline & $ & 28.4$ & 16.9$ & 8.9 \\ \hline \end{tabular} Liabilities Current liabilities Accounts payable. Salaries payable Total current liabilities Notes payable Total liabilities $5.5$5.0$3.5 2.17.61.66.61.0 Shareholders' equity Shareholders' equity. 16.99.312.25.68.94.4 Total liabilities and shareholders' equity =$117.8$28.9$8 Requirement 1. Calculate the current ratio for 20X1, 20X2, and 20X3. (Enter amounts in thousands as provided to you in the problem statement, X.X. Round your answers to three decimal places.) Requirement 2. Calculate the debt ratio for 20X1, 20X2, and 20X3. (Enter amounts in thousands as provided to you in the problem statement, X.X. Round your answers to three decimal places.)