Smith and Sons, Inc. Income Statement (in millions) 2016 2015 Net sales $10,100 $9,600 Cost of goods sold (5,500) (5,200) Gross profit 4,600 4,400 Selling and administrative expenses (2,800) (2,700) Income from operations 1,800 1,700 Interest expense (300) (250) Income before income taxes 1,500 1,450 Income tax expense (420) (400) Net Income 1,080 1,050 Smith and Sons, Inc. Balance Sheet (in millions) 2016 2015 Assets Current assets Cash and cash equivalents 250 450 Accounts receivable 900 800 Inventory 550 700 Other current assets 400 250 Total current assets 2,100 2,200 Property, plant & equipment, net 2,550 2.450 Other assets 5.700 5,900 Total Assets 10,350 10,550 Liabilities and Stockholders' Equity Current liabilities 3,050 2,950 Long term liabilities 5,000 5,400 Total liabilities 8,050 8,350 Stockholders' equity common 2,300 2,200 Total Liabilities and Stockholders' Equity 10,350 10,550 Calculate the current ratio for Smith & Sons, Inc., for 2015 and 2016. Round answers to two decimal places. 2015 2016 Did the company's ability to pay its current liabilities improve over the two years? OThe decrease in ratio indicates that Smith & Son's ability to pay its current liabilities improved. OThe increase in ratio indicates that Smith & Son's ability to pay its current liabilities declined. OThe decrease in ratio indicates that Smith & Son's ability to pay its current liabilities declined. OThe increase in ratio indicates that Smith & Son's ability to pay its current liabilities improved