(Learning Objective 6: Using the current ratio and the debit ratio) Use the Falcon Sporting Goods data in Short Exercise S3-12 to compute Falcon’s (a) current ratio and (b) debt ratio after each of the following transactions (all amounts in thousands, as in the Falcon financial statements):
1. Falcon earned revenue of $10,000 on account
2. Falcon paid off accounts payable of $10,000. (Challenge) Round ratios to 2 decimal places.