Theta Tech Solutions

Scenario: Financial Ratio Analysis

Data:

• 2023:
  • Current Assets: $200,000
  • Current Liabilities: $100,000
  • Total Assets: $500,000
  • Total Liabilities: $300,000
  • Net Income: $50,000

• 2022:
  • Current Assets: $180,000
  • Current Liabilities: $90,000
  • Total Assets: $450,000
  • Total Liabilities: $270,000
  • Net Income: $45,000

Requirements:

1. Calculate the current ratio for 2022 and 2023.
2. Calculate the debt-to-equity ratio for 2022 and 2023.
3. Analyze the liquidity and solvency of the company based on these ratios.