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Problem $9-26$A $($Algo$)$ Using ratios to make comparisons LO $9-7$

The following accounting information exists for the Aspen and Willow companies:

Aspen Willow

Cash $ $16,000$ $ $26,000$

Wages payable $18,50025,500$

Merchandise inventory $23,71055,400$

Building $60,00090,000$

Accounts receivable $32,65036,500$

Long$-$term notes payable $80,000130,000$

Land $45,00050,000$

Accounts payable $40,00043,000$

Sales revenue $220,000290,000$

Expenses $195,000245,000$

Required

a$-1.$ Determine the amount of current assets and current liabilities for each company.

a$-2.$ Compute the current ratio for each company.

b$.$ Assuming that all assets and liabilities are listed above, compute the debt$-$to$-$assets ratios for each company.