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Big Bend Photo Shop has asked you to determine whether the company's ability to pay current liabilities and total liabilities improved or deteriorated during 2018.
Big Bend 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: (Click the icon to view the data.) Read the requirements. a. Compute the current ratios for 2018 and 2017. Begin by selecting the formula to compute the current ratio. Current ratio Data Table i Requirements 2017 2018 54,000 $ Cash $ 53,000 Compute the following ratios for 2018 and 2017, and evaluate the company's ability to pay its current liabilities and total liabilities: a. Current ratio d. Debt ratio b. Cash ratio e. Debt to equity ratio c. Acid-test ratio Short-term Investments 33,000 0 Net Accounts Receivables 134,000 116,000 Merchandise Inventory 257,000 252,000 Total Assets 480,000 475,000 Print Done Total Current Liabilities 265,000 44,000 Long-term Note Payable Income from Operations Interest Expense 202,000 64,000 153,000 185,000 52,000 31,000 Print Done Choose from any drop-down list and then click Check Answer. 10 parts Clear All remaining
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