Compute the ratios for both years. SUBMIT ANSWERS HERE: ABC Company Balance Sheet Dec 31 2015 2014 (in thousands) 2015 2014 CURRENT RATIO QUICK RATIO PROFIT MARGIN RATIO DEBT-TO-ASSETS RATIO Assets Current assets Cash Short-term investments Accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment Intangibles Total assets 550 600 1000 900 800 650 770 780 200 225 3320 3155 690 600 875 1000 $4,885.00 $4,755.00 Based on your results, answer the following questions: 1. Which of the ratios that you calculated would potential creditors use to measure a company's liquidity? Explain why. Liabilities and Owners' Equity Current liabilities Long-term liabilities Stockholders' equity Total liabilities and SE 1540 1300 1695 1709.5 1650 1746 $4,885.00 $4,755.50 ABC Company Income Statement For the Year Ended Dec 31 (in thousands) 2015 2014 7400 8010 -900 -840 2. Based on your calculation of ABC Company's debt-to-assets ratio, do you believe a creditor/investor would see this a desirable financial position to be in? Explain your reasoning. -5100 -4950 Sales revenue Costs and expenses Cost of goods sold Selling and administrative expenses Interest expense Total costs and expenses Income before income taxes Income tax expense Net income -10 1390 550 260 $290.00 -9 2211 610 230 $380.00