Please solve as soon as possible

1. What is the formula of current ratio? 2. Calculate the current ratio at December 31, Year 2 and December 31, Year 1. 3. Which year has the higher ability to pay? Alex Motors reported the following in recent balance sheets for Year 1 and Year 2: 31-Dec 31-Dec Year 2 Year 1 Assets Current Assets: Cash $ 83,000 $ 84,050 Short-term Investments $ 62,700 $ 47,400 Accounts Receivable $ 6,000 $5,000 Inventory $135,200 $118,150 Prepaid Rent $ 64,000 $72,000 Total Current Assets $350,900 $326,600 $ 93,000 $90,000 $ 96,000 $103,250 $539,900 $519,850 $ 75,000 $ 62,000 $ 2,000 $ 3,000 $ 7,500 $ 5,500 $ 84,500 $ 70,500 $ 44,500 $ 40,200 $ 129,000 $110,700 $ 45,900 $ 42,400 $365,000 $366,750 $410,900 $409,150 $ 539,900 $519,850 Software Equipment Total Assets Liabilities and Stockholder's Equity Liabilities Current Liabilities Accounts Payable Notes Payable (short-term) Income Tax Payable Total Current Liabilities Notes Payable (Long-term) Total Liabilities Stockholders' Equity Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity