Refer to the Cloud Break Consulting classified balance sheet presented in the Summary Problem.

RequiredCompute Cloud Break Consulting’s current ratio and debt ratio at November 30, 2023. Round your answers to two decimal places. One year ago the current ratio was 1.20 and the debt ratio was 0.45. Indicate whether Cloud Break Consulting’s ability to pay its debts has improved or deteriorated during the current year.

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Assets Current assets Cash CLOUD BREAK CONSULTING Balance Sheet November 30, 2026 Accounts receivable Supplies Prepaid rent Total current assets Property, plant, and equipment Building Less: Accumulated amortization Land Total property, plant, and equipment Total assets Liabilities Current liabilities Accounts payable Salaries payable Unearned service revenue Total current liabilities Owner's Equity Michael Moe, capital Total liabilities and owner's equity $300,000 169,000 $131,000 119,000 2,000 18,000 131,000 45,000 $159,000 1,000 10,000 $270,000 176,000 $446,000 $170,000 276,000 $446,000