. Hill Roy Corporation. has asked the accounts department to determine whether the companys ability to pay its current liabilities and long-term debts improved or deteriorated during current year. To answer this question, compute the following ratios for current year and preceding year.

1. Current ratio

2. Quick (acid-test) ratio

3. Debt ratio

4. Times-interest-earned ratio

5. Prepare a small report based on your analysis of the following financial statement data in a written report format.