The following are a condensed 2014 income statement and a December 31, 2014 balance sheet for Murf Company 6-46 MURF COMPANY lncome Statement For Year Ended December 31, 2014 $154,000 91,300) Sales (net) Gross profit Interest expense Net Income s 62,700 Operating expenses(47,300) MURF COMPANY Balance Sheet December 31, 2014 3,200 2.100 7,370 9,650 $ Marketable securities (short-term)_-....- Accounts recelvable. Property and equipment (net97.680 $120,000 Total Assets Current liabilities Note payable (due l 201/19). Total Liabilities S. Murf, capital Total Liabilties and Owner's Equity 12.400 35.00 47,400 $120,000 On january I. 2014, the accounts receivable were $6.050, the inventory was $10,950, the total assets were $110.000, and the owner's capital was $62,600. The company makes 60% of its net sales on credit and operates on a 300-day business year. At the end of 2013, the following ratio results were computed, based on the company's finan- cial statements for 2013 (a) Current (b) Quick (c) Debt (d) Inventory Turnover (e) Accounts Receivable Turnover13.6 times (22.1 days) (f) Gross Profit Percentage (2) Profit Margin (h) Return on Total Assets (0 Return on Owner's Equity The company has hired you to update its ratio results and compare its performance in 2014 with that in 2013. 1.3 43.3% 8.5 times (35.3 days) 39.2% 7.8% 124% 17.0% Required (1) Compute the preceding ratios for 2014 (2) Write a short report that compares the company's performance in 2014 with that in 2013 regarding its liquidity. financial flexibility, operating capa- billity, and profitability