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Large Limb Photo Shop has asked you to determine whether the company's ability to pay current liabilities and total liabilities improved or deteriorated during 2018.

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Large Limb Photo Shop has asked you to determine whether the company's ability to pay current liabilities and total liabilities improved or deteriorated during 2018. To answer this question, you gather the following data: (Click the icon to view the data.) Read the requirements. 2018 2017 Cash $ 54,000 $ 52,000 Short-term Investments 26,000 0 Net Accounts Receivables 122,000 108,000 Merchandise Inventory 267,000 292,000 Total Assets 495,000 490,000 OS An Net Accounts Receivables 122,000 108,000 Merchandise Inventory 267,000 292,000 Total Assets 490,000 Total Current Liabilities 495,000 285,000 202,000 38,000 58,000 Long-term Note Payable Income from Operations Interest Expense 168,000 160,000 52,000 39,000 Compute the following ratios for 2018 and 2017, and evaluate the company's ability to pay its current liabilities and total liabilities: a. Current ratio d. Debt ratio b. Cash ratio e. Debt to equity ratio c. Acid-test ratio

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