E13-21A. (Learning Objective 5: Compute ratios; evaluate turnover, liquidity, and current debt-paying ability) The financial statements of Big City News, Inc., include the following items: 2014 2013 2012 Balance sheot: Cash Short-term investments 17,000 Net seceivables5,0 S 48,000 84,000 21,000 75,000 72,000 53,000 72,000 60,00 Peepaid Toral c 230,000 75,000 131,000 258,000 65,000 94,000 50,000 Tocal curet lncome statesnt Net credit sales 484,000 $507,000 266,000 254,000 Cost of goods sold.. Requirements 1. Using Exhibit 13-8 as a model, compute the following ratios for 2014 and 2013 a. Current ratio b. Quick (acid-test) ratio C. Inventory turnover and days' inventory outstanding (DIO) d. Accounts receivable turnover e. Days' sales in average receivables or days' sales outstanding (DSO) f. Accounts payable turnover and days' payable outstanding (DPO). Use cost of goods sold in the formula for accounts payable turnover g. Cash conversion cycle (in days) (When computing days, round your answer to the nearest whole number.) 2. Evaluate the company's liquidity and current debt-paying ability for 2014. Has it improved or deteriorated from 2013? 3. As a manager of this company, what would you try to improve next year