Question: Top Notch Frames has asked you to determine whether the companys ability to pay current liabilities and total liabilities improved or deteriorated during 2014. To

Top Notch Frames has asked you to determine whether the company€™s ability to pay current liabilities and total liabilities improved or deteriorated during 2014. To answer this question, compute these ratios for 2014 and 2013, using the following data:

a. Current ratio
b. Acid- test ratio
c. Debt ratio
d. Times- interest- earnedratio

2014 2013 2 Cash 60,500 S 45,000 3 Short-term investments 4 Net recevables 5 Inventory 6 Total assets 7 Total current liabilities 115,500 226,800 28 108,201 286,560 558,000 488,000 199000 30,360 171000 174580 3,000 270,000 8 Long-term notes payable 9 1 Income from operations 10 Interost expense 31320 5 50,000 S

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