The comparative financial statements of Bien Taco Restaurants for 2015, 2014, and 2013 include the following selected data:

Requirements
1. Compute these ratios for 2015 and 2014:
a. Quick ratio.
b. Accounts receivable turnover. Assume all sales are credit sales.
2. Write a memo explaining to the company owner which ratios improved from 2014 to 2015, which ratios deteriorated, and which items in the financial statements changed and caused changes in some ratios. Discuss whether this conveys a favourable or an unfavourable impression about the company.

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(In Thousands) 2014 2015 2013 Statement of Financial Position Current Assets: Cash $ 82 $ 80 $ 60 Short-term Investments 140 174 122 Receivables, Net of Allowance for Doubtful Accounts of $6, $6, and $5 respectively Inventory Prepaid Expenses 257 265 218 429 341 302 21 27 46 Total Current Assets 929 887 748 Total Current Liabilities $ 680 $ 700 $ 600 Income Statement Sales Revenue $4,995 $4,206 2,418 $5,189 Cost of Goods Sold 2,734 2,636