The balance sheet of December 31, 2015, 2016, and 2017 and income statement for the years ended December 31, 2015, 2016, and 2017 for Navajo Inc. include the following data Click icon to view the balance sheet.) Click icon to view the income statement) Requirements Use the years of data to answer the following: 1. Calculate the current ratio for 2015, 2016 and 2017 2. Chovate the debt ratio for 2015, 2016, and 2017 3. Evaluate each rate and determine the ratio has improved order ed over the three years. Explain what the changes mean Requirements 1& 2. Calculate the current ratio and the debt ratio for 2015, 2016 and 2017. Use a calculator that allows you six decimals. Round 2017 2016 ratios to three decimals) 1. Current ratio 2. Debt ratio Requirement 3. Ev a ch and determine the ratio has improved or deteriorated over the three years Expia what the changes mean The current ratio has current over the years (some deterioration in 2016 was werd in 2017). This means that Na and indicates that Navajo can pay its debts. ine had cash to pay to accounts payable and stories payable every year in 2017, the The dentro has This ratio is still over the 3 years. In 2015, Nova franced 100 of 13 sets with det, at December 31, 2017, only the company needs to borrow in order to finance more upment or expand their office space enter the percentas a number with no decimal) of the assets were finances Balance sheet 5. 2016, and 2017, for Navajo Inc. include the following data: As at December 31 0 Income statement 2017 2016 2015 (in thousands) Assets Current assets Cash $ 2.9 7.9 $0.9 4.9 $0.4 3.4 Navajo Inc. Income Statement For the Year Ended December 31 2017 2016 (in thousands) 2015 Accounts receivable Total current assets 10.8 5.8 3.8 2.9 15.9 Revenue Furniture and equipment, net Total assets $ 26.7 $15.2 $6.7 $ 99.9 $89.9 $ 63.9 Service revenue Expenses Salary 46.3 Liabilities Current liabilities Accounts payable 59.9 17.9 Rent 57.4 15.9 2.9 11.9 bf the Supplies 19 $4.9 1.4 $4.4 0.9 $2.9 0.4 Salaries payable Utilities 6.3 5.3 Depreciation 63.9 Total current liabilities Noles payable Total liabilities Shareholders' equity Shareholdersequity Total expenses Income before taxes 15.2 10.2 6.7 Income tax expense 11 4 49 00 Net Income $ 0.0 Total liabilities and shareholders' equity $26.6 S 15.1 $6.7 Requirements Use the years of data to answer the following: 1. Calculate the current ratio for 2015, 2016, and 2017 2. Calculate the debt ratio for 2015, 2016, and 2017 3. Evaluate each ratio and determine if the ratio has improved or deteriorated over the three years. Explain what the changes mean. Requirements 1 & 2. Calculate the current ratio and the debt ratio for 2015, 2016, and 2017. (Use a calculator that allows you six decimals. 2017 2015 2016 1. Current ratio 2. Debt ratio Requirement 3. Evaluate each rato and determine if the ratio has improved or deteriorated over the three years Explain what the changes maar over the 3 years (some deterioration in 2016 was reversed in 2017). This means that Nevajo Inc. had cash to pay its accounts payable and salaries payable every year. In 2017, current ratio is and indicates that Navajo can pay its debts. The debt ratio has over the years. In 2015, Navajo financed 100% of its assets with det, at December 31, 2017, ony (enter the percentas whole number with a decimal) of me were anced This ratio is un V. the company needs to borrow in order to finance more or expand their office space
