Prince Clark Winery requested that you determine whether the company€™s ability to pay its current liabilities and long-term debts improved or deteriorated during 2012. To answer this question, compute the following ratios for 2012 and 2011:
(a) Current ratio,
(b) Quick ratio,
(c) Debt ratio,
(d) Interest coverage ratio.
Round all ratios to two decimal places. Summarize the results of youranalysis.

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2012 2011 Cash Short-Term Investments Accounts Receivable, Net nventory Prepaid Expenses Total Assets Total Current Liabilities.. Long-Term Note Payable Income From Operations.. Interest Expense... .30,000 40,000 37,000 18,000 120,000 140,000 .290,000 320,000 7,000 10,000 600,000 750,000 ....220.000 200,000 145,000 180,000 22,000 26,000