Harper's, a home improvement store chain, reported these summarized figures: (Click the icon to view the income statement. (Click the loon to view the balance sheets.) a. Compute the debt ratio at December 31, 2017 b. Is Harper's ability to pay its liabilities strong or weak? Explain your reasoning a. Compute the debt ratio at December 31, 2017 First identify the formula, then compute the debt ratio at December 31, 2017. (Round your answer to two decimal places.) Debt ratio Choose from any list or enter any number in the input fields and then click Check Answer Clear All Training i Income statement Harper's Income Statement For The Year Ended December 31, 2017 2017 Sales revenues 45,260,000 21,750,000 Less: Cost of goods sold Gross profit Less: Operating expenses Operating income 23,510,000 5,085,250 18,424,750 217,400 Less interest expense Income before income taxes 18,207.350 1.990,850 Less! Income tax expense Net income 16,216,500 Print Done click Check Answer Clear All Balance sheets Harper's Balance Sheets December 31, 2017 and 2016 2017 2016 Assets Current assets: Cash 1,240,000 $ 207.000 Short-term investments 100,700 Accounts receivable Inventory 803,000 263.000 399 400 4,100,000 403,500 4,650,000 506,000 Other current assets Total current assets 6,703,700 $ 13,000,000 19,703.700 $ 5,968,900 11,660,000 Other noncurrent assets Total assets $ 17,628,900 Liabilities Current liabilities: Accounts payable Notes payable $ 3,100,000 S 880,000 2.975,000 660,000 Print [Done] Balance sheets Uuuu YUUUUU Other current assets Total current assets $ Other noncurrent assets 6,703,700 $ 13,000,000 19,703,700 $ 5,968,900 11,660,000 17,628,900 $ Total assets Liabilities Current liabilities: $ 3,100,000 $ 2,975,000 Accounts payable Notes payable 880,000 470,000 660,000 35,000 Accrued liabilities Total current liabilities 4,450,000 $ 4,292,000 3,670,000 4,218,000 Long-term liabilities Total liabilities $ 8,742,000 $ 7,888,000 Stockholders' equity Common stock, no par $ Retained earnings Total stockholders' equity 2,509,000 $ 8,452.700 10,961.700 $ 1,000,000 8,740,900 9,740.900 $ Total liabilities and equity $ 19,703.700 S 17,628,900 Print Done