Ratios The following is selected accounting information from CoffeeBuddy Services Current assets 60,000 Current liabilities 20,000 Long-term assets 50,000 Long-term liabilities 40,000 Revenues 30,000 Expenses 15,000 Required: Calculate the current ratio (to two decimal places) for CoffeeBuddy. Evaluate the Current Ratio as indicative of a "strong" or "weak" financial position and support your answer with a detailed explanation. Calculate the debt ratio (to two decimal places) for CoffeeBuddy Evaluate the Debt Ratio as indicative of a "strong" or "weak" financial position and support your answer with a detailed explanation.

Answer rating: 100% (QA)

First lets calculate the current ratio Current ratio Current assets Current liabilities Given Curren... View the full answer