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 2018. To answer this question, you gather the following data:

	2018	2017
Cash	$  58,000	$  47,000
Short-term Investments	34,000	0
Net Accounts Receivable	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	165,000	158,000
Interest Expense	55,000	41,000

Compute the following ratios for 2018 and 2017, and evaluate the company’s ability to pay its current liabilities and total liabilities:

1. Current ratio

2. Cash ratio

3. Acid-test ratio

4. Debt ratio

5. Debt to equity ratio