holesterol Dairy Products has plants in five provinces and operates a very large home delivery service. Sales last year were $100 million, and the balance sheet at year-end is similar in percent of sales to that of previous years (and this will continue in the future). All assets and current liabilities will vary directly with sales. Assume the firm is already using capital assets at full capacity.

Balance Sheet

(in $ millions)AssetsLiabilities and Shareholders' EquityCash$5Accounts payable$7Accounts receivable10Accrued wages5Inventory25Accrued taxes3Current assets$40Current liabilities$15Capital assets40Long-term debt20Common stock25Retained earnings20Total assets$80Total liabilities and shareholder's equity$80

Accrued wages

$

(Click to select)

Prepaid expenses

Capital Asset

Accounts receivable

Inventory

Cash

(Click to select)

Accrued wages

Retained earnings

Accounts payable

Common stock

Long-term debt

(Click to select)

Inventory

Prepaid expenses

Gross plant

Accounts receivable

Cash

(Click to select)

Accrued taxes

Retained earnings

Accounts payable

Common stock

Long-term debt

Current assets

$

Current liabilities

$

(Click to select)

Inventory

Cash

Accrued taxes

Capital Assets

Accounts Receivable

(Click to select)

Long-term debt

Accrued wages

Accounts payable

Accrued taxes

(Click to select)

Common stock

Accrued wages

Accounts payable

Accrued taxes

$

(Click to select)

Retained earnings

Accrued wages

Accounts payable

Accrued taxes

Total assets$Total liabilities and shareholders' equity

$

c.Calculate the current ratio and total debt to assets ratio for each year.(Round the final answers to 2 decimal places.)

Year 1Year 2Current ratioXXTotal debt / assets%%