Question
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
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 |
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Core Concepts Of Information Technology Auditing
Authors: James E Hunton, Stephanie M Bryant, Nancy A Bagranoff
1st Edition
0471222933, 9780471222934
