Chapter 2 Financial Statements and the Annual Report L04 Problem 2-4A Financial Statement Ratios The following items, in alphabetical order, are available from the records of Quinn Corporation as of December 31, 2014 and 2013: December 31, 2014 December 31, 2013 Accounts payable CL Accounts receivable C Cash CA Interest receivable Note receivable, due 12/31/2016 CA Office supplies CP Prepaid insurance CA $10,500 16,500 12,750 200 12,000 900 400 1,800 10,000 6,500 26,000 11,800 0 12,000 1,100 250 800 5,800 Salaries pavable) cL Taxes payable Required 1. Calculate the following as of December 31, 2014, and December 31, 2013: a. Working capital b. Current ratio 2. On the basis of your answers to (1), comment on the company's relative liquidity at the beginning and end of the year. Explain the change in the company's liquidity from the beginning to the end of 2014