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e. Compute the debt to equity ratios for

20182018

and

20172017.

a. Compute the current ratios for

20182018

and

20172017.

Begin by selecting the formula to compute the current ratio.

Current ratio

=

Total current assets / Total current liabilities

Now, compute the current ratios for

20182018

and

20172017.

(Round your answers to two decimal places, X.XX.)

2018:	1.54
2017:	2.09

b. Compute the cash ratios for

20182018

and

20172017.

Begin by selecting the formula to compute the cash ratio.

Cash ratio

=

(Cash + Cash equivalents) / Total current liabilities

Now, compute the cash ratios for

20182018

and

20172017.

(Round your answers to two decimal places, X.XX.)

2018:	0.19
2017:	0.25

c. Compute the acid-test ratios for

20182018

and

20172017.

Begin by selecting the formula to compute the acid-test ratio.

Acid-test ratio

=

(Cash + Short-term investments + Net current receivables) / Total current liabilities

Now, compute the acid-test ratios for

20182018

and

20172017.

(Round your answers to two decimal places, X.XX.)

2018:	0.76
2017:	0.84

d. Compute the debt ratio for

20182018

and

20172017.

Begin by selecting the formula to compute the debt ratio.

Debt ratio

=

Total liabilities / Total assets

Now, compute the debt ratios for

20182018

and

20172017.

(Round your answer to one tenth of a percent, X.X%.)

2018:	63	%
2017:	60.2	%

e. Compute the debt to equity ratios for

20182018

and

20172017.

Begin by selecting the formula to compute the debt to equity ratio.

Debt to equity

=

Total liabilities / Total equity

Now, compute the debt to equity ratios for

20182018

and

20172017.

(Round your answers to two decimal places, X.XX.)

2018:
2017:

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Data Table

	2018	2017
Cash	$60,000	$55,000
Short-term Investments	33,000	0
Net Accounts Receivables	146,000	132,000
Merchandise Inventory	247,000	277,000
Total Assets	570,000	475,000
Total Current Liabilities	315,000	222,000
Long-term Note Payable	44,000	64,000
Income from Operations	150,000	178,000
Interest Expense	54,000	37,000

Begin by selecting the formula to compute the debt to equity ratio.

Debt to equity

=

Total liabilities / Total equity

Now, compute the debt to equity ratios for

20182018

and

20172017.

(Round your answers to two decimal places, X.XX.)

2018:
2017:	7

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