The following items appear on the balance sheet of Figgins Company at the end of 2018 and

Question:

The following items appear on the of Figgins Company at the end of 2018 and 2019:
_____________________________________ 2019 _____________ 2018
Current assets .................................... $6,000 .................. $3,000
Long-term assets ................................. 7,000 ..................... 4,000
Current liabilities ................................. 2,000 ..................... 3,000
Long-term liabilities ............................. 7,000 .......................... 0
Stockholders' equity ........................... 4,000 ...................... 4,000
Required:
Between 2018 and 2019, indicate whether Figgins' debt to equity ratio increased or decreased. Also, indicate whether Figgins' current ratio increased or decreased. Interpret these ratios?
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...