Large Land Photo Shop has asked you to determine whether the companys ability to pay current liabilities and total liabilities improved or deteriorated during 2015.

To answer this question, you gather the following data:

2015 2014

Cash $ 58,000 $ 57,000

Short-term Investments 31,000 0

Net Accounts Receivables 110,000 132,000

Merchandise Inventory 247,000 297,000

Total Assets 585,000 535,000

Total Current Liabilities 255,000 222,000

Long-term Note Payable 46,000 48,000

Income From Operations 180,000 153,000

Interest Expense 52,000 39,000

Compute the following ratios for 2015 and 2014, and evaluate the companys

ability to pay its current liabilities and total liabilities:

a. Current ratio

b. Cash ratio

c. Acid-test ratio

d. Debt ratio

e. Debt to equity ratio