The balance sheet at December 31, 2012, 2013, and 2014 and income statement for the years ended December 31, 2012, 2013, and 2014 for Ojibway Inc. include the following data:

Requirements
Use the years of data to answer the following:
1. Calculate the current ratio for 2012, 2013, and 2014.
2. Calculate the debt ratio for 2012, 2013, and 2014.
3. Evaluate each ratio and determine if the ratio has improved or deteriorated over the three years. Explain what the changes mean.

Transcribed Image Text:

Ojibway Inc. Balance Sheet As at December 31 (in thousands) Furniture and equipment, net Total liabilities Shareholders' equity Shareholders' equity Ojibway Inc. Income Statement For the year ended December 31 (in thousands) Total Income tax expense