Evensen Furniture Company has 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. Working capital
b. Current ratio
c. Quick (acid-test) ratio
d. Debt ratio
e. Times-interest-earned ratio
Summarize the results of your analysis in a writtenreport.

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2012 2011 Cash Short-term in Net receivables...121,000 129,000 Inventory... 238,000 267,000 Prepaid expenses Total assets Total current liabilities 237,000 151,000 Long-term debt Income from Interest expense. $ 40,000 50,000 6,000 31,000 5,000 570,000 540,000 15,000 87,000 255,000 operations... 250,000 199,000 40,000 40,000