Canadian explorer Ray Zahab is a record-breaking ultra marathoner and an extreme adventurer. Zahab ran 7,500 kilometres across the Sahara Desert in 2007 and recorded the Guinness World Record for the fastest unsupported expedition to the South Pole in 2009. Recently Zahab has focused his special brand of adventure on the Canadian Arctic, where he has undertaken midwinter crossings of Baffin Island, leaving from Qikiqtarjuaq, adventuring through the Akshayuk pass, then arriving in Pangnirtung Fjord.

Adventuring costs money, and Zahab wants you, his accountant, to answer some questions the bank has asked him about his company’s current and debt ratios.

You have the following information:

RequiredCalculate Zahab’s current ratio and debt ratio for both years. Look at the trend. Is the current ratio improving or getting worse? Explain briefly. What about the debt ratio? Explain briefly.

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2022 2022 $100,000; 2021 – $95,000 $25,000; 2021 - $50,000 Non-current assets: 2022 $200,000; 2021 $150,000 Non-current liabilities: 2022 - $75,000; 2021 - $105,000. Current assets: Current liabilities: -