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 2015. To answer this question, you gather the following data:

Compute the following ratios for 2015 and 2014, and evaluate the company€™s ability to pay its current liabilities and total liabilities:
a. Current ratio
b. Cash ratio
c. Acid-test ratio
d. Debt ratio
e. Debt to equityratio

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2015 2014 Cash Short-term Investments Net Accounts Receivables Merchandise Inventory Total Assets Total Current Liabilities Long-term Note Payable Income From Operations Interest Expense 58,000 57,000 31,000 110,000 132,000 247,000 297,000 585,000 535,000 255,000 222,000 46,000 48,000 180,000 153,000 52,000 39,000