Maple Trump Winery requested that you determine whether the company's ability to pay its current liabilities and long-term debts improved or deteriorated during 2018.

To answer this question, compute the following ratios for 2018 and 2017 :

(a) current ratio, (b) quick ratio, (c) debt ratio, and (d) interest coverage ratio. Round all ratios to two decimal places. Summarize the results of your analysis.

	2018	2017
Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	$77,000	$70,000
Short-term investments. . . . . . . . . . . . . . . . .	15,000	2,000
Accounts receivable, net. . . . . . . . . . . . . . . .	185,000	94,000
Inventory. . . . . . . . . . . . . . . . . . . . . . . . . . . . .	420,000	300,000
Prepaid expenses. . . . . . . . . . . . . . . . . . . . . .	9,000	10,000
Total assets. . . . . . . . . . . . . . . . . . . . . . . . . . .	860,000	520,000
Total current liabilities. . . . . . . . . . . . . . . . . . .	170,000	245,000
Long-term note payable. . . . . . . . . . . . . . . . .	190,000	280,000
Income from operations. . . . . . . . . . . . . . . . .	120,000	106,000
Interest expense. . . . . . . . . . . . . . . . . . . . . . .	20,000	33,000

To answer this question, compute the following ratios for 2018 and 2017:

(a) current ratio, (b) quick ratio, (c) debt ratio, and (d) interest-coverage ratio. Round all ratios to two decimal places. (Abbreviations used: Avg = Average, EBIT = Earnings before interest and taxes, LT = Long-term, and ST = Short-term.)

Begin with a. current ratio.

Select the formula and then enter the amounts to calculate the current ratios.