Question: e4 mine whether the company's ability ed or deteriorated during 2018. To E17-19 Analyzing the ability to pay liabilities Big Beautiful Photo Shop has asked
e4 mine whether the company's ability ed or deteriorated during 2018. To E17-19 Analyzing the ability to pay liabilities Big Beautiful Photo Shop has asked you to determine whether the company to pay current liabilities and total liabilities improved or deteriorated during answer this question, you gather the following data: 2018 2017 $ 47,000 Cash Short-term Investments Net Accounts Receivable Merchandise Inventory Total Assets Total Current Liabilities Long-term Notes Payable Income from Operations Interest Expense $ 58,000 34,000 140,000 217,000 530,000 288,000 40,000 165,000 55,000 124,000 272,000 565,000 205,000 50,000 158,000 41,000 Compute the following ratios for 2018 and 2017, and evaluate the company's ability to pay its current liabilities and total liabilities: a. Current ratio d. Debt ratio b. Cash ratio e. Debt to equity ratio c. Acid-test ratio
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