Big Beautiful Photo Shop has asked you to determine whether the company’s ability to pay current liabilities and total liabilities improved or deteriorated during 2024. To answer this question, you gather the following data:

Compute the following ratios for 2024 and 2023 and evaluate the company’s ability to pay its current liabilities and total liabilities:
a. Current ratio
b. Cash ratio
c. Acid-test ratio
d. Debt ratio
e. Debt to equity ratio

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Cash Short-term Investments Net Accounts Receivable Merchandise Inventory Total Assets Total Current Liabilities Long-term Notes Payable Income from Operations Interest Expense 2023 $ 47,000 0 2024 $ 58,000 34,000 140,000 124,000 217,000 272,000 530,000 565,000 288,000 205,000 40,000 165,000 55,000 50,000 158,000 41,000