Cornerstone Exercise 12-51 Debt Management and Short-Term Liquidity Ratios The following items appear on the balance sheet of Figgins Company at the end of 2012 and 2013: 2013 $6,000 7,000 2,000 7,000 4,000 2012 S3,000 4,000 3,000 Current assets Long-term assets Current liabilities Long-term liabilities Stock holders' equity Required: Between 2012 and 2013, indicate whether Figgins' debt to equity ratio increased or decreased. Also, indicate whether Figgins' current ratio increased or decreased. Debt to equity ratio Current ratio Interpret these ratios. Because current assets Select and current liabilities Select the current ratio Select equity has Select 4,000 Select Select . However, Figgins' debt t 7. This could indicate a potential Select solvency problem 0 Icon Key