please do 3.2

3.2 Comment on the debt position and the trends indicated in the long-term debt-paying ability by comparing between the two years. Formula 2010 2011 Working capital 41678-20722 =20956 44988-27970=17018 Net working capital-current assets-current liabilities Current ratio Current Assets Current Liabilities 41678 Current Ratio = 44988 27970 = 1.6 20727 = 2.01 Acid-Test Ratio 41678-1051 1.96 44988 - 776 27970 = 1.58 Acid-Test for Quick Ratio Current Asset - Inventory Current Lates 20722 Account Receivable Turnover Annual credit sales Accounts Receivable 65225 - 11.83 108249 5369 = 20.16 5510 Inventory Turnover 64431 cost of goods sold Inventory 39541 -= 37.62 1051 776 = 84.02 Debt ratio 27392 39756 Debit ratio= total liabilities total assets 75183 = 0.3643 116371 = 0.3416 = 36.43% = 34.16% Times interest earned 18540 T 155 = 119.61 33790 =81.42 Times interest earned EBIT intrest expense 415