Hudson Crowe Winery requested that you determine whether the company’s ability to pay its current liabilities and long-term debts improved or deteriorated during 2010. To answer this question, compute the following ratios for 2010 and 2009:

(a) current ratio,

(b) quick ratio,

(c) debt ratio, and

(d) times-interest-earned ratio. Summarize the results of your analysis.

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Cash.. Short-Term Investments. Accounts Receivable, Net Inventory.......... Prepaid Expenses.. Total Assets 2010 2009 $ 41,000 $ 49,000 50,000 90,000 156,000 320,000 395,000 570,000 650,000 Total Current Liabilities. 250,000 244,700 Long-Term Liabilities. 30,200 32,000 Income From Operations 145,000 203,000 Interest Expense 46,000 40,000