Use Apparels financial statements in Exercise 12-65 to respond to the following requirements. Required: 1. Compute the

Question:

Use Apparel’s financial statements in Exercise 12-65 to respond to the following requirements.

Required:

1. Compute the five debt-management ratios for 2008 and 2009.

2. Indicate whether the ratios have changed and whether the ratios suggest that Apparel is more or less risky for long-term creditors at December 31, 2009 than at December 31, 2008.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...