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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
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 Begin by selecting the formula to compute the debt to equity ratio Debt to equity Now, compute the debt to equity ratios for 2018 and 2017 (Round your answers to two decimal places, XXX) 2018 2017 Debt to equity ratio Evaluate the company's ability to pay its current liabilities and total liabilities industry averages for 2018; current ratio: 0.60, cash ratio 0.40, acid-test ratio 0.46, debt ratio: 69% debt to equity ratio: 2.23)
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