The following items appear on the balance sheet of Lawless Company at the end of 2008 and 2009: Required:Between 2008 and 2009, indicate whether Lawless Companys debt-to-equity ratio increased or decreased. Also, indicate whether the companys current ratio increased or decreased. Interpret theseratios. 2009 $6,000 7,000 2,000 7,000 4,000 2008 Current assets Long-term assets Current liabilities Long-term liabilities Stockholders' equity

The following items appear on the of Lawless Company at the end of 2008 and 2009:

Required:
Between 2008 and 2009, indicate whether Lawless Company€™s debt-to-equity ratio increased or decreased. Also, indicate whether the company€™s current ratio increased or decreased. Interpret theseratios.

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...