Triumph's Companies, a home improvement store chain, reported the following summarized figures: E (Click the icon to view the income statement.) E (Click the icon to view the balance sheets.) Triumph's has 30,000 common shares outstanding during 2018. Read the requirements. Requirement 1. Compute the debt ratio and the debt to equity ratio at May 31, 2018, for Triumph's Companies. Begin by selecting the formula to calculate Triumph's Companies' debt ratio. Then enter the amounts and calculate the debt ratio for 2018. (Round the ratio to one tenth of a percent, X.X%.) Debt ratio Triumph's Companies Income Statement Years Ended May 31, 2018 and 2017 2018 2017 Net Sales Revenue 46,500 $ 42,000 Cost of Goods Sold 20,600 23,700 Interest Expense 400 280 6,900 7,100 All Other Expenses 18,600 $ 10,920 Net Income %24 Triumph's Companies Balance Sheet May 31, 2018 and 2017 Assets Liabilities 2018 2017 2018 2017 Cash 2,100 $ 1,900 Total Current Liabilities 25,000 $ 13,300 12,800 9,800 12,000 Long-term Liabilities 5,500 Total Liabilities Short-term Investments 25,000 Accounts Receivable 7,200 37,800 23,100 Merchandise Inventory 7,100 5,900 Stockholders' Equity 9,000 1,800 Common Stock Other Current Assets 13,000 13,000 32,600 20,000 27,100 Retained Earnings 29,000 Total Equity Total Current Assets 50,400 33,000 45,600 33,000 All Other Assets $ 83,400 $ 56,100 2$ Total Liabilities and Equity 83,400 S 56,100 Total Assets 1. Compute the debt ratio and the debt to equity ratio at May 31, 2018, for Triumph's Companies. 2. Is Triumph's ability to pay its liabilities strong or weak? Explain your reasoning.