Compute the following short-term liquidity ratios for 2011, and provide a brief explanation after each ratio (round computations to two decimal places):

1. Current ratio

2. Quick ratio

18. Long-Term Solvency Ratios. Refer to the condensed balance sheet for Apple, Inc., in Brief Exercise 17.

Required:

Compute the following long-term solvency ratios for 2011, and provide a brief explanation after each ratio (round computations to two decimal places):

1. Debt to assets

2. Debt to equity