The comparative financial statements of Perfection 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 change conveys a favourable or an unfavourable impression about the company.

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(In Thousands) 2015 2014 2013 Statement of Financial Position Current Assets: $ 55 $ 80 Cash $ 82 Short-term Investments 130 178 125 Receivables, Net of Allowance for Doubtful Accounts of $7, $6, and $4, respectively Inventory Prepaid Expenses Total Current Assets 290 305 256 434 335 315 24 30 55 960 928 806 $ 780 $ 800 $ 625 Total Current Liabilities Income Statement $5,039 $4,250 2,490 Sales Revenue $5,223 Cost of Goods Sold 2,768 2,650