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

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LA 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:

a. Working capital

b. Current ratio

c. Quick (acid-test) ratio

d. Debt ratio

e. Times-interest-earned ratio

Use Exhibit 13-8 as a model. Round your answers to two decimal places. Summarize the results of your analysis in a shortparagraph.

LA Furniture Company has requested that you determine whether the
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Financial Accounting

ISBN: 978-0133427530

10th edition

Authors: Walter Harrison, Charles Horngren, William Thomas

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