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decimal places.) decimal places.) Requirement 3. Evaluate each ratio and determine if the ratio has improved or deteriorated over the three years. Explain what the changes mean. In this step, evaluate the current ratio. The current ratio between 201 and 202 and between 202 and 20X3. This means that Otego Inc. had cash to pay its accounts payable and salaries payable every year. In 203, the current ratio is and indicates that Otego can pay its debts. Now, evaluate the debt ratio. (Round the percentages to the nearest tenth percent, X.X%.) Otego financed what percent of its assets with debt in 20X1? Otego financed what percent of its assets with debt in 203 ? Complete the following sentences. The debt ratio has over the three years. The debt ratio as of December 31,203, is if the company needs to borrow to finance more equipment or expand its office space. Balance Sheet Otego Inc. Balance Sheet As at December 31 (in thousands) 203202201 Assets Current assets Liabilities Current liabilities \begin{tabular}{|c|c|c|c|} \hline Accounts payable. & 5.5$ & 5.0$ & 3.5 \\ \hline Salaries payable... & 2.1 & 1.6 & 1.0 \\ \hline Total current liabilities ... & 7.6 & 6.6 & 4.5 \\ \hline Notes payable ...... & 9.3 & 5.6 & 4.4 \\ \hline Total liabilities & 16.9 & 12.2 & 8.9 \\ \hline \multicolumn{4}{|l|}{ Shareholders' equity } \\ \hline Shareholders' equity. . & 12.0 & 5.6 & 0.0 \\ \hline Total liabilities and shareholders' equity & $28.9$ & 17.8$ & 8.9 \\ \hline \end{tabular} Income Statement Required Use the years of data to answer the following: 1. Calculate the current ratio for 201,202, and 203. 2. Calculate the debt ratio for 201,202, and 203. 3. Evaluate each ratio and determine if the ratio has improved or deteriorated over the three years. Explain what the changes mean

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