Income Statement Win's Companies Income Statement Years Ended May 31, 2024 and 2023 Balance Sheets Win's Companies Balance Sheet May 31, 2024 and 2023 2024 2023 Assets Liabilities Net Sales Revenue Cost of Goods Sold $ 49,200 $ 38,800 2024 2023 2024 2023 23,300 28,600 Cash 2,500 $ Interest Expense 200 140 Short-term Investments 27,000 7,500 8,400 All Other Expenses Accounts Receivable 7,600 1,900 Total Current Liabilities 12,000 Long-term Liabilities 5,300 Total Liabilities $ 25,000 $ 12,800 12,900 10,700 37,900 23,500 $ 18,200 $ 1,660 Net Income Merchandise Inventory 7,300 8,200 Stockholders' Equity 11,000 1,700 Other Current Assets Common Stock 10,000 10,000 Total Current Assets 55,400 29,100 Retained Earnings 40,500 24,600 Print Done 33,000 29,000 All Other Assets Total Equity 50,500 34,600 $ 88,400 $ 58,100 $ 88,400 $ 58,100 Total Assets Total Liabilities and Equity Win's Companies, a home improvement store chain, reported the following summarized figures: (Click the icon to view the income statement.) (Click the icon to view the balance sheets.) Win's has 20,000 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 Win's Companies. Begin by selecting the formula to calculate Win'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 = % Begin by selecting the formula to calculate Win's Companies' debt to equity ratio. Then enter the amounts and calculate the debt to equity ratio for 2024. (Round the ratio to two decimal places, X.XX.) = Debt to equity ratio Requirement 2. Is Win's ability to pay its liabilities strong or weak? Explain your reasoning. (Assume the following industry averages; debt ratio: 69%, debt to equity ratio: 2.23.) The company's ability to pay its liabilities appears since the debt ratio is fairly