Please help with this accounting problem I am new to accounts. Using financial ratios, compare the firm's financial performance for 2013 and 2014. 2. What do you think might have happened from 2013 to 2014?

The following financial statements are for the Northern Lights Corporation. The company provides pay phone service at many of the small convenience stores in Ontario and Manitoba. The business was "meeting plan" until 2014 when a problem developed

Web Case 14 - Northern Lights Communications Web Case 14 Northern Lights Communications Phone Problems The following nancial statements are for the Northern Lights Corporation. The company provides pay phone service at many of the small convenience stores in Ontario and Manitoba. The business was \"meeting plan\" unlil 2014 when a problem developed. Balance Sheet ASSETS Current Assets: Cash and cash equivalents $ 668,778 $ 592,491 Accounts receivable 4,453,192 3,888,621 Inventories 137,036 112,699 Prepaid expenses and 411 990 407,274 other current assets Total current assets: $ 5,670,996 $5,001,085 Fixed assets: Property, plant, and $12,935,453 $16,466,001 equipment (net) Site licenses 1,941,467 3,771,571 Investments in affiliates 164 549 251,672 Total fixed assets $15,041,469 $20,489,244 Other assets 681 754 455,488 TOTAL ASSETS $21,394,219 $25,945,817 DEBT (LIABILITIES) AND EQUITY Current Liabilities Notes payable $ 659,604 Current portion of other 1,491,767 $3,320,197 Web Case 14 - Northern Lights Communications notes payable Current portion of capital lease obligations Accounts payable Accrued telecommunications and other expenses Income taxes payable Total current liabilities Long-term liabilities: Notes payable, less current portion Capital lease obligations Deferred income tax liability Total long-term liabilities Preferred stock Common stockholders' equity: Common Stock Additional paid-in capital Retained earnings Total ownership equity TOTAL DEBT AND EQUITY 1,094,381 310,358 2,971,935 $ 6,605,835 780,593 342 359 $ 7,728,787 $ 2,400,000 $ 1,438,903 10,630 3,031,714 4 481247 $21 394 219 668,826 835,384 3,036,633 .n. 4 U1 (.0 .n. (11 1 $10,030,963 56,219 306,021 $10,393,203 $ 2,400,000 $ 1,438,903 10,630 3,366,096 4 815,629 $25 945,817 Web Case 14 - Northern Lights Communications Income Statements for Northern Lights Communications, Inc. 2013 2014 Sales Revenue Pay-phone coin calls Automated operator, routed calls Other Total revenues Operating expenses: Telephone charges Commissions Telecommunications fees Depreciation and amortization Field operations personnel Chargebacks and doubtful accounts General and administrative expenses Total operating expenses Operating income Other income (expenses): Interest expense Interest income Losses on affiliates Unusual gains Total other income (expenses) Income before taxes Provision for income taxes Net income $14,036,665 17,049,394 505 581 I $31,591,640 $ 7,851,842 4,909,445 1,821,930 4,298,090 2,016,935 1,104,896 5 520 405 _a_:_ $27 523,543 $ 4,068,097 ($1,631,416) 57,278 ( 34,608) 1 160 238 ll 448 5081 $3,619,589 1 339 140 lI $2 220,449 $17,615,069 15,932,154 1 363 738 lI $34,910,951 $ 9,078,851 5,627,288 1,519,095 5,353,797 2,988,456 1,111,857 6435 919 _a_:_ 32115 263 ll $2,795,688 ($1,816,222) 5,069 ( 108,556) m {8 1 892,475: $ 903 213 424 831 I $ 478,382 Web Case 14 - Northern Lights Communications 4 Questions 1 . Using financial ratios, compare the firm's financial performance for 2013 and 2014. 2. What do you think might have happened from 2013 to 2014