The following items appear on the balance sheet of Figgins Company at the end of 2010 and

Question:

The following items appear on the of Figgins Company at the end of 2010 and 2011:

The following items appear on the balance sheet of Figgins

Required:
Between 2010 and 2011, indicate whether Figgins€™ debt-to-equity ratio increased or decreased. Also, indicate whether Figgins€™ current ratio increased or decreased. Interpret these ratios.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...