Evansville 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 2018. To answer this question, calculate the following ratios for 2018 and 2017. 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

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2018 2017 $ 35,000 $ 47,000 Cash.. Short-term investments. 32,000 4,000 Net receivables.. 115,000 128,000 Inventory.. 240,000 270,000 Prepaid expenses 21,000 510,000 12,000 Total assets.... 500,000 Total current liabilities 187,000 252,000 Long-term debt.. Income from operations. 157,000 48,000 196,000 155,000 Interest expense.. 59,000 46,000