NY Furniture Company has requested that you determine whether the companys ability to pay its current liabilities

NY Furniture Company has requested that you determine whether the company’s ability to pay its current liabilities and long-term debts improved or deteriorated during 2014. To answer this question, compute the following ratios for 2014 and 2013. Use Exhibit 13-8 as a model. Round your answers to two decimal places.

a. Working capital

b. Current ratio

c. Quick (acid-test) ratio

d. Debt ratio

e. Times-interest-earned ratio

Summarize the results of your analysis in a shortparagraph.

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2014 2013 Cash Short-term inv S 42,000 S 48,000 6,000 31,000 Inventory. Prepaid expenses Total assets 235,000 261,000 5,000 572,000 534,000 Total current liabilities249,00 151,000 87,000 255,000 Income from operations210,000 199,000 40,000 15,000 Long-term debt Interest expense 38,000