Question: (Learning Objective 4: Analyzing the ability to pay current liabilities) Dorman Furniture Company has requested that you determine whether the companys ability to pay its

(Learning Objective 4: Analyzing the ability to pay current liabilities) Dorman Furniture Company has requested that you determine whether the company’s ability to pay its current liabilities and long-term debts improved or deteriorated during 20X6. To answer this question, compute the following ratios for 20X6 and 20X5:

a. Current ratio

c. Debt ratio

b. Acid-test ratio

d. Times-interest-earned ratio Summarize the results of your analysis in a written report.

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