Refer to your solution to Exercise 4-11 (and the data in Exercise 4-8).

Required
Compute Paddy's Cell Systems' current ratio and debt ratio at March 31, 2017. One year ago the current ratio was 1.20 and the debt ratio was 0.30. Indicate whether Paddy's Cell Systems' ability to pay its debts has improved or deteriorated during the current year.

PADDY'S CELL SYSTEMS Adjusted Trial Balance March 31,2017 $27,600 7,500 3,600 168,900 Cash Supplies Prepaid rent Office equipment Accumulated amortization-office equipment Accounts payable Salaries payable Unearned service revenue P. O'Neill, capital P. O'Neill, withdrawals Service revenue Salaries expense Rent expense Amortization expense-office equipment Supplies expense Utilities expense $26,050 29,300 3,250 17,600 153,300 15,000 61,000 45,200 15,650 1,200 2,650 3,200 $290,500 $290,500