$15-1.($Risk$-$return trade$-$off$)$ Ramsey Liquors owns and operates a chain of beer and wine shops throughout the Dallas$-$Fort Worth metroplex. The rapidly expanding population of the area has resulted in the firm requiring a growing amount of funds. Historically, the fim has reinvested earnings and borrowed using short$-$term bank notes. Balance sheets for the last $5$ years are found below$\mathrm{.}20142015201620172018$Current Assets$$250$$ $325$$ $400$$ $475$$ $550$Fixed Assets$750800800825875$Total$$1\mathrm{.}000$$$1\mathrm{.}125$$$1\mathrm{.}200$$$1\mathrm{.}300$$$1\mathrm{.}425$Current Liabilities$ $125$$ $225$$$325$$$425$$$525$Long$-$term Liabilities$250250250250250$Owner s Equity$\mathrm{.}625650625625650$Total$$1\mathrm{.}000$$$1\mathrm{.}125$$$1\mathrm{.}200$$$1\mathrm{.}300$$$1\mathrm{.}425$a$.$ Compute the firm's current ratio $($current assets divided by current liabilities$)$ and the firm's debt ratio $($current plus long$-$term liabilities divided by total assets$)$ for the $5-$year periodd found above. Describe the firm's risk using both the current ratio and debt ratio.b$.$ Alter the financial statements above such that current liabilities remain constant at $550$ and long$-$term labilities increase in the amount needed to meet the firm's financing requirements. Compute the firm's current ratio $($current assets divided by current liabilities$)$ and the firm's debt ratio $($current plus long$-$term liabilities divided by total assets$)$ using the revised financial statements you have prepared for the $5-$year period $2014-2018.$ Describe the firm's risk using both the current ratio and debt ratio.c$.$ Which of the financing plans is more risky? Why?