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Big Time Photo Shop has asked you to determine whether the company's ability to pay current liabilities and total liabilities improved or deteriorated during 2025.
Big Time Photo Shop has asked you to determine whether the company's ability to pay current liabilities and total liabilities improved or deteriorated during 2025. To answer this question, you gather the following data: View the data. Read the requirements, a. Compute the current ratios for 2025 and 2024 Begin by selecting the formula to compute the current ratio. Current ratio = Total current assets + Total current liabilities Now, compute the current ratios for 2025 and 2024 (Round your answers to two decimal places, X.XX.) Current ratio 2025 2024 b. Compute the cash ratios for 2025 and 2024 Begin by selecting the formula to compute the cash ratio. Cash ratio= Now, compute the cash ratios for 2025 and 2024. (Round your answers to two decimal places, X.XX.) Cash ratio 2025 2024 c. Compute the acid-test ratios for 2025 and 2024. Begin by selecting the formula to compute the acid-test ratio Acid-test ratio= Now, compute the acid-test ratios for 2025 and 2024 (Round your answers to two decimal places, XXX) Acid-test ratio 2025 2024 2025 Data MARA Cash Short-term Investments Net Accounts Receivable Merchandise Inventory Total Assets Total Current Liabilities Long-term Notes Payable Income from Operations Interest Expense Print Requirements $ Print 2025 2024 55,000 $ 49,000 25,000 111,000 128,000 245,000 298,000 583,000 534,000 254,000 225,000 41,000 177,000 56,000 49,000 157,000 38,000 Done Compute the following ratios for 2025 and 2024, and evaluate the company's ability to pay its current liabilities and total liabilities: a. Current ratio b. Cash ratio c. Acid-test ratio d. Debt ratio e. Debt to equity ratio - X d. Compute the debt ratio for 2025 and 2024. Begin by selecting the formula to compute the debt ratio. Debt ratio= Now, compute the debt ratios for 2025 and 2024. (Round your answer to one tenth of a percent, XX, and do not enter the % symbol into the input field. For example, enter 10.1% as 10.1.) Debt ratio % Done 0 - . X
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