Red River Services, Inc. Balance Sheet January 31, 2018 Assets Less: Liabilities Stockholders' Equity Requirement 2. Calculate Red River's net working capital, current ratio, and debt ratio at January 31, 2018, rounding to two decimal places. At January 31, 2017, net working capital was $22,000, the current ratio was 1.90, and the debt ratio was 0.25. Did Red River's ability to pay both current and total debts improve or deteriorate during the fiscal year? Evaluate Red River's debt position as strong or weak and give your reason. Compute Red River's net working capital at January 31, 2018. = Net working capital Compute Red River's current ratio at January 31, 2018. (Round your calculation to two decimal places.) J = Current ratio Now calculate Red River's debt ratio at January 31, 2018. (Round your calculation to two decimal places.) = Debt ratio Red River's overall ability to pay current liabilities with current assets has during 2018. Red River's overall debt position has because the debt ratio has Overall, Red River's debt position is because its debt ratio i Reference - X Expenses Dividends Retained Earnings 44,000 Balance, January 31, 2017 12,000 Revenue Balance January 31, 2018 13,200 95,000 52,200 Print Done Data Table - X 12,800 Interest expense. . . . . . . . . . . . $ 1,100 17,000 16,200 14,300 6,000 Accounts payable . . . . . . . . . . . . . . $ Accounts receivable.............. Accumulated depreciation, equipment Advertising expense ...... Cash ............... Common stock ................ Current portion of long-term. ....... note payable Depreciation expense-equipment.. Dividends declared........ Equipment ....... 7,500 11,100 17,300 4,100 Note payable, long term ..... Other assets, long-term ....... Prepaid expenses. ... Retained earnings, January 31, 2017 Salary expense..... Salary payable ...... Service revenue...... Supplies..... Supplies expense .......... Unearned service revenue.... 2,000 1,100 12,000 43,200 13,200 26,500 3,400 95,000 3,200 4,200 2,800 Print Done