Triumph's Companies, a home improvement store chain, reported the following summarized figures:

Triumph's Companies, a home improvement store chain, reported the following summarized figures (Click the icon to view the income statement)(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, XX%.) Debt ratio = Triumph's Companies Income Statement Years Ended May 31, 2018 and 2017 2018 2017 Net Sales Revenue Cost of Goods Sold Interest Expense All Other Expenses Net Income 46,500 $ 42,000 23,700 280 7,100 10,920 20,600 400 6,900 18,600 S Triumph's Companies Balance Sheet May 31, 2018 and 2017 Assets Liabilities 2018 2017 2018 2017 25,000 $ 12,800 Cash Short-term Investments Accounts Receivable Merchandise Inventory Other Current Assets Total Current Assets All Other Assets Total Assets 2,100 $ 13,300 9,800 23,100 1,900 Total Current Liabilities$ 25,000 12,000 Long-term Liabilities 5,500 Total Liabilities 5,900 1,800 Common Stock 7,200 7,100 9,000 50,400 33,000 83,400 $ 37,800 Stockholders' Equity 13,000 32,600 45,600 83,400 $ 13,000 20,000 33,000 56,100 27,100 Retained Earnings 29,000 Total Equity 56,100 Total Liabilities and Equity 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