Jalbert Furniture Company has asked you to determine whether the company’s ability to pay its current liabilities and long-term debts improved or deteriorated during 2021. To answer this question, calculate the following ratios for 2021 and 2020. Round your answers to two decimal places. Summarize the results of your analysis in a short paragraph. 

a. Net working capital

b. Current ratio

c. Quick (acid-test) ratio

d. Debt ratio

e. Times-interest-earned ratio

Transcribed Image Text:

Cash.. Short-term investments.. Net receivables. Inventory... Prepaid expenses Total assets.... Total current liabilities. Long-term debt Income from operations. Interest expense.. 2020 2021 $ 50,000 $ 49,000 29,000 11,000 123,000 129,000 239,000 266,000 20,000 4,000 560,000 470,000 217,000 262,000 77,000 104,000 250,000 148,000 40,000 38,000