Condensed statement of financial position and comprehensive income statement data for Track Ltd. follow:

Additional information:
1. The allowance for doubtful accounts was $5,000 in 2014 and $10,000 in 2015.
2. Accounts receivable at the beginning of 2014 were $80,000, net of an allowance for doubtful accounts of $3,000.
3. Inventories at the beginning of 2014 were $320,000.
4. Total assets at the beginning of 2014 were $1,075,000.
5. Current liabilities at the beginning of 2014 were $250,000.
6. Total liabilities at the beginning of 2014 were $543,500.
7. Total shareholders' equity at the beginning of 2014 was $531,500.
8. All sales were on account.
9. Net cash provided by operating activities was $135,500 in 2014 and $223,000 in 2015.
10. Net capital expenditures were $50,000 in 2014 and $92,000 in 2015.
11. In each of 2014 and 2015, $4,000 of dividends were paid to the common shareholders.
Instructions
(a) Calculate all possible liquidity, solvency, and profitability ratios for each of 2014 and 2015.
(b) Indicate whether the change in each ratio calculated in part (a) was favourable, unfavourable, or unchanged between 2014 and 2015.
(c) Explain whether Track's overall
(1) Liquidity,
(2) Solvency, and
(3) Profitability improved, deteriorated, or remained the same between 2014 to 2015.

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TRACK LTD. Statement of Financial Position December 31 2015 2014 Assets Accounts receivable (net) Inventories Prepaid expenses Long-term investments Land Buildings and equipment (net) Total assets Liabilities and Shareholders' Equity Liabilities $50,000 100,000 400,000 25,000 80,000 125,000 560,000 $1,340,000 42,000 87,000 300,000 31,000 50,000 75,000 400,000 $985,000 Notes payable Accounts payable Current portion of mortgage payable Mortgage payable, due 2022 $150,000 245,000 48,750 200,000 643.750 50,000 190,000 25,000 125,000 390,000 Total liabilities Shareholders' equity Common shares (100,000 shares issued) Retained earnings Accumulated other comprehensive income 400,000 292,250 4,000 696,250 $1,340,000 400,000 195,000 Total shareholders' equity Total liabilities and shareholders' equity 595,000 $985,000 TRACK LTD Statement of Comprehensive Income Year Ended December 31 2015 2014 $950,000 Net sales Cost of goods sold Gross pron Operating expenses Profit from operations Interest expense Profit before income tax Income tax expense Profit Other comprehensive income Total comprehensive income $1,100,000 650,000 450,000 285,000 165,000 30,000 135,000 33,750 101,250 4,000 $105,250 315,000 215,000 100,000 0,000 22,500 67,500 $ 67,500