· Period 1 Balance Sheet (Dec 31, 2022):

• Current Assets: $150,000
• Current Liabilities: $80,000

· Period 2 Balance Sheet (Dec 31, 2023):

• Current Assets: $180,000
• Current Liabilities: $100,000

·Evaluate Solvency Ratios: Requirements:

• Using balance sheet data, compute solvency ratios such as the debt-to-assets ratio and the interest coverage ratio.
• Interpret these solvency ratios and discuss their implications for a company's ability to meet its long-term financial obligations.
• Compare and contrast the debt-to-assets ratio and the interest coverage ratio in assessing solvency.