Debt Management and Short-Term Liquidity Ratios

Duffy Company is an international travel agency providing travel planning services to customers in over 20 countries. Recently, the travel industry has been experiencing volatility as a result of increases in oil prices. Duffys investors have been following its financial information closely to determine its ability to continue as a going concern. Its investors have used the following information to determine financial ratios:

	2023		2022
Current assets	$7,200		$7,800
Long-term assets	7,000		-800
Current liabilities	2,400		3,000
Long-term liabilities	7,800		0
Stockholder's equity	4,000		4,000

Required:

Between 2022 and 2023, indicate whether Duffys debt to equity ratio increased or decreased. Also, indicate whether Duffys current ratio increased or decreased.

Debt to equity ratio	IncreasedDecreased
Current ratio	IncreasedDecreased