​(Risk return ​trade-off​) CL Marshall Liquors owns and operates a chain of beer and wine shops throughout the​ Dallas-Fort Worth metroplex. The rapidly expanding population of the area has resulted in the firm requiring a growing amount of funds. ​Historically, the firm has reinvested earnings and borrowed using​short-term bank notes. Balance sheets for the last 5 years are found in the popup​ window: LOADING... . a. Compute the​ firm's current ratio​ (current assets divided by current​ liabilities) and the​ firm's debt ratio​ (current plus​ long-term liabilities divided by total​ assets) for the​ 5-year period found above. Describe the​ firm's risk using both the current ratio and debt ratio. b. Alter the financial statements above such that current liabilities remain constant at $ 60 and​ long-term liabilities increase in the amount needed to meet the​ firm's financing requirements. Compute the​ firm's current ratio​ (current assets divided by current​ liabilities) and the​ firm's debt ratio​(current plus​ long-term liabilities divided by total​ assets) using the following revised financial​ statements, LOADING... ​, you have prepared for the​ 5-year period 2011long dash 2015. Describe the​ firm's risk using both the current ratio and debt ratio. c. Which of the financing plans is more​ risky? Why? a. Compute the​ firm's current ratio and the​ firm's debt ratio for the​ 5-year period using the​ firm's balance sheet found in the following​ table: 2011 2012 2013 2014 2015
Current assets 130 160 190 220 250
Fixed assets 260 280 300 320 340
Total 390 440 490 540 590
Current liabilities 60 100 140 180 220
Long-term liabilities 120 120 120 120 120
Owners' equity 210 220 230 240 250
Total 390 440 490 540 590