Compute four ratios that measure Variline's ability to earn profits. The company's comparative income statement follows. The data for 2014 are given as needed.

Did the company's operating performance improve or deteriorate during 2014?

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Variline Income Statement For the Years Ended December 31, 2014 and 2013 (amounts In thousands) 2014 2013 2012 6 Sales revenues 7 Less: Cost of goods sold 8 Gross profit 9 Less:Operating expens 10 Operating income 11 Less: Interest expense 12 Income before income taxes 13 Less: Income tax expense 14 Net income 15 16 Additional data: 17-1 Totalasets 18 Common stockholders' equity 19 Preferred dividends 20 Common shares outstanding during the year 21 178,120 167125 88,000 841205 9725 35,000 411205 44,725 8,100 s 33,760$ 36,625 23,207 94,000 43,000 7,360 11,495 2,26515 3418 203,000 192,000 S 179,000 110,050 2,660 26,140 86,00077,000 2,660 26,140 24,000