Patio Furniture Inc. has asked you to 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. Current ratio
b. Quick (acid-test) ratio
c. Debt ratio
d. Times-interest-earned ratio
Summarize the results of your analysis of the following financial statement data in a written report.

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2014 2013 Cash. Short-term investments $61,000 $47,000 28,000 142,000 116,000 286,000 263,000 9,000 643,000 489,000 255,000 221,000 52,000 165,000 158,000 39,000 nvcntany Prepaid expenses. 11,000 Total current liabilities 46,000 Income from operations Interest expens 40,000