The comparative financial statements of Bien Taco Restaurants for 2010, 2009, and 2008 include the following selected data:

Requirements 1. Compute these ratios for 2010 and 2009:

a. Quick ratio.

b. Accounts receivable turnover. Assume all sales are credit sales.
2. Write a memo explaining to the company owner which ratios improved from 2009 to 2010, which ratios deteriorated, and which items in the financial state¬ ments changed and caused changes in some ratios. Discuss whether this change conveys a favorable or an unfavorable impression about the company.

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(In Thousands) 2010 2009 2008 Balance Sheet Current Assets: Cash Short-term Investments $ 82 $ 80 $ 60 140 174 122 7g4 Receivables, Net of Allowance for Uncollectible Accounts of $6. $6, and $5 respectively 257 265 218 Inventory 429 341 302 Prepaid Expenses 21 27 46 Total Current Assets 929 887 748 Total Current Liabilities $ 680 $ 700 $ 600 Income Statement Sales Revenue Cost of Goods Sold $5,189 $4,995 $4,206 2,734 2,636 2,418