HG Lang Designs operates an exclusive bridal boutique in Manhattan. All gowns are designed by Lang but are manufactured by various small firms in France and Italy. The following financial information for the company 

Mode Milano is a bridal gown manufacturing company in Milan. Recently, the company received an order for $500,000 of merchandise from HG Lang with payment to be made within 60 days of delivery. Mode asked Lang to provide a copy of its audited financial statements from 2021 and 2020 so that it could analyze them before accepting the order. 

Required      

a. Compute the following ratios to help Mode Milano decide whether to accept the order from HG Lang: current ratio, acid test, debt-to-equity ratio and times interest earned.      

b. Based on the analysis in part, does it appear that HG Lang will have any difficulty paying its bill to Mode Milano?

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HG Lang Designs Balance Sheets December 31, December 31, 2021 2020 Assets Current assets: $ 65,000 $ 88,000 333,200 Cash Accounts receivable 352,000 Inventory 1,795,000 1,764,000 Other current assets 62,000 65,000 Total current assets 2,274,000 2,250,200 Buildings, furniture, and fixtures, net 1,611,000 1,611,000 Total assets $3,885,000 $3,861,200 Liabilities and Stockholders' Equity Current liabilities: $ 73,000 $ 65,200 Accounts payable Bank loan payable Other accrued payables 89,000 110,000 13,000 11,000 Total current liabilities 175,000 186,200 Long-term debt 311,000 366,000 Total liabilities 486,000 552,200 Stockholders' equity: Common stock 1,248,000 1,248,000 Retained earnings 2,151,000 2,061,000 Total stockholders' equity 3,399,000 3,309,000 Total liabilities and stockholders' equity $3,885,000 $3,861,200