Refer to the Cartwright’s Data Set.

a. Compute the debt ratio at December 31, 2023.

b. Is Cartwright’s ability to pay its liabilities strong or weak? Explain your reasoning.

Data From Cartwright’s Data Set:-

Cartwright’s, a home-improvement store chain, reported these summarized figures:

Transcribed Image Text:

1 2 4 3 4 5 6 Sales revenues 7 Less: Cost of goods sold 8 Gross profit 9 Less: Operating expenses 10 Operating income 11 Less: Interest expense 12 Income before income taxes 13 Less: Income tax expense 14 Net income 15 Cartwright's Income Statement For the Year Ended December 31, 2023 B 2023 $ 34,988,900 21,766,030 $ 13,222,870 5,088,250 S 8,134,620 217,800 $ 7,916,820 1,925,750 $ 5,991,070