The Balance Sheets and Income Statements for Sunshine Communications Follow

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The Answer is a. 2019 current ratio = $86,842 / $77,624 = 1.12
2018 current ratio = $109,822 / $81,511 = 1.35
During the year, the company's current ratio has deteriorated. The decline from 2018 to 2019 warrants attention as liquidity dropped significantly.
b. 2019 debt-to-equity ratio = ($473,187 - $171,075) / $171,075 = 1.77
2018 debt-to-equity ratio = ($542,599 - $168,062) / $168,062 = 2.23
Overall levels of debt have decreased during the year and the debt-to-equity ratio has also decreased, which signifies improved solvency.

The Balance Sheets and Income Statements for Sunshine Communications Follow

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The Balance Sheets and Income Statements for Sunshine Communications Follow

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