$[$ROA and ROE Models and Ratio Components$]$ The Salza Technology Corporation

successfully increased its "top line" sales from $$375,000$ in $2018$ to $$450,000$ in $2019.$

Net income also increased as did the venture's total assets. You have been asked to

compare the financial performance between the two years.

SALZA TECHNOLOGY CORPORATION

ANNUAL INCOME STATEMENTS

$($IN $ THOUSANDS$)$

BALANCE SHEETS AS OF DECEMBER $31$

$($IN $ THOUSANDS$)$

$[$Liquidity and Financial Leverage Ratios$]$ Refer to the Salza Technology Corporation in Problem $1.$

$1.$ Using average balance sheet account data, calculate the $($a$)$ current ratio, $($b$)$ quick ratio, $($c$)$ total$-$debt$-$to$-$total$-$assets ratio, and $($d$)$ the interest coverage ratio for $2019.$

$2.$ Repeat the ratio calculations requested in Part A separately for $2018$ and $2019$ using year$-$end balance sheet account data. What changes, if any, have occurred in terms of liquidity and financial leverage?