The top management of Parker Marketing Services examines the following company accounting records at August 29, immediately before the end of the year, August 31:

Total current assets.................................... $ 324,900

Noncurrent assets...................................... 1,074,000

$1,398,900

Total current liabilities................................. $ 173,700

Noncurrent liabilities................................... 245,500

Stockholders' equity.................................... 979,700

$1,398,900

1. Suppose Parker's management wants to achieve a current ratio of 2.8. How much in current liabilities should Parker pay off within the next two days in order to achieve its goal?

2. Calculate Parker's leverage ratio and debt ratio. Use year-end figures in place of averages where needed for the purpose of calculating ratios in this exercise. Evaluate the company's debt position. Is it low, high, or about average? What other information might help you to make a decision?