Management Accounting

Management Accounting. This assignment is due Tuesday, May 2nd. Below is one of the seven accounting questions I need help with:Big Time Picture Frames has asked you to determine whether theÿcompany’s ability to pay current liabilities and total liabilities improved or deteriorated during 2009. To answer thisÿquestion, you gather the followingÿdata: ______________________________________________2009__________2008Cashÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ $52, 000 ÿÿÿÿÿÿ51, 000 Short-term investmentsÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 30,000ÿÿÿÿÿÿÿÿÿÿÿÿÿ –Net receivablesÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 110,000ÿ ÿ ÿ ÿ ÿ120, 000Inventoryÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 217,000ÿ ÿ ÿ ÿ 262,000Total assetsÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 540,000ÿ ÿ ÿ ÿ ÿ490,000Total current liabilitiesÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 265,000ÿ ÿ ÿ ÿ ÿ202,000Long-term note payableÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 44,000ÿÿÿÿÿÿÿÿÿÿÿ54,000Income from operationsÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 165,000ÿ ÿ ÿ ÿ ÿ153,000Interest expenseÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 44,000ÿÿÿÿÿÿÿÿÿÿ37,000ÿ Requirement1. Compute the following ratios for 2009 andÿ2008:????a. Current ratio ????b. Acid-test ratio????c. Debt ratio????d. Times-interest-earned ratioa. Calculate the current ratio for both years. (Round your answers to two decimalÿplaces.)2009: nothing2008: nothing

Management Accounting