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Big Beautiful Photo Shop has asked you to determine whether the company's ability to pay current liabilities and total liabilities improved or deteriorated during 2024.
Big Beautiful Photo Shop has asked you to determine whether the company's ability to pay current liabilities and total liabilities improved or deteriorated during 2024. To answer this question, you gather the following data: (Click the icon to view the data.) Read the requirements. Requirements Compute the following ratios for 2024 and 2023, and evaluate the company's ability to pay its current liabilities and total liabilities: d. Debt ratio a. Current ratio b. Cash ratio c. Acid-test ratio e. Debt to equity ratio Print Done - Data table 2024 2023 b decimal plac Cash $ Short-term Investments 58,000 $ 47,000 34,000 0 Net Accounts Receivables 140,000 124,000 Merchandise Inventory 217,000 272,000 Total Assets 530,000 565,000 Total Current Liabilities 288,000 205,000 Long-term Notes Payable 40,000 50,000 Income from Operations Interest Expense 165,000 158,000 55,000 41,000 Print Done
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