Refer to the information in Exercise 4-20. You, business analyst at Second Cup Ltd. have been asked to calculate the debt to equity ratio (round to two decimal places). Provide your manager with comments on the ratio and the change from 2012 to 2013.

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The following is selected simplified information from Second Cup Ltd.€™s Balance Sheet as at December 28, 2013, and December 29, 2012. You, business analyst at Second Cup, have been asked to calculate the current ratio and the quick ratio (round to two decimal places). Provide your manager with comments on the ratios and the change from 2012 to 2013.

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(Numbers in thousands) 2013 2012 $ 6,501 $ 3,880 Cash Accounts receivable 4,368 4,616 Notes receivable (current) 220 265 137 Inventories 123 695 Prepaid expenses and other (current) assets 190 11,061 Current liabilities 10,649 Total liabilities 31,376 31,980 Shareholders' equity 56,700 45,964 Source: Second Cup 2013 Annual Report