Large Land Photo Shop has asked you to determine whether the company's ability to pay current liabilities and total liabilities improved or deteriorated during 2012. To answer this question, you gather the following data:

Requirement
1. Compute the following ratios for 2012 and 2011:
a. Current ratio
b. Acid-test ratio
c. Debt ratio
d. Debt to equityratio

Transcribed Image Text:

2012 2011 $ 58,000 $ 57,000 Cash.... Short-term investments 31,000 Net reccivables ..... 110,000 247,000 132,000 297,000 Inventory Total assets 585,000 535,000 Total current liabilities 255,000 222,000 Long-term note payable Income from operations 46,000 48,000 153,000 180,000 39,000 Interest expense 52,000