I Income Statement Accel's Companies Income Statement Years Ended May 31, 2024 and 2023 2024 2023 40,600 $ 40,500 Net Sales Revenue Cost of Goods Sold 28,400 30,600 Interest Expense 600 570 All Other Expenses 4,300 8,200 $ 7,300 $ 1,130 Net Income Accel's Companies, a home improvement store chain, reported the following summarized figures: B Click the icon to view the income statement.) 6 (Click the icon to view the balance sheets.) Accel's has 10,000 common shares outstanding during 2024. Read the requirements. Requirement 1. Compute the debt ratio and the debt to equity ratio at May 31, 2024, for Accel's Companies. Begin by selecting the formula to calculate Accel's Companies' debt ratio. Then enter the amounts and calculate the debt ratio for 2024. (Round the ratio to one tenth of a percent, X.X%.) = Debt ratio x i Requirements 1. Compute the debt ratio and the debt to equity ratio at May 31, 2024, for Accel's Companies. 2. Is Accel's ability to pay its liabilities strong or weak? Explain your reasoning. Accel's Companies Balance Sheet May 31, 2024 and 2023 Assets Liabilities 2024 2023 2024 2023 Cash 2,400 $ 28,000 $ 13,200 Total Current 900 Liabilities Long-term 9,000 Liabilities Short-term Investments 28,000 13,900 10,300 Accounts Receivable 7,500 5,200 Total Liabilities 41,900 23,500 6,900 8,600 Stockholders' Equity Merchandise Inventory Other Current Assets 8,000 1,500 Common Stock 11,000 11,000 Total Current Assets 52.800 25.200 IRetained Earnings 29,900 19,700 Balance Sheets Assets Liabilities 2024 2023 2024 2023 Total Current 900 Liabilities Cash 2,400 $ $ 28,000 $ 13,200 Short-term Investments Long-term 9,000 Liabilities 28,000 13,900 10,300 Accounts Receivable 7,500 5,200 Total Liabilities 41,900 23,500 6,900 8,600 Stockholders' Equity Merchandise Inventory Other Current Assets 8,000 1,500 Common Stock 11,000 11,000 Total Current Assets 52,800 25,200 Retained Earnings 29,900 19,700 All Other Assets 30,000 40,900 30,700 29,000 Total Equity Total Liabilities and 54,200 Equity 82,800 $ 82,800 $ 54,200 Total Assets