The comparative financial statements of O’Doherty’s Irish Grille for 2016, 2015, and 2014 include the following selected data:

Requirements
1. Compute these ratios for 2016 and 2015:
a. Quick ratio
b. Current ratio
c. Accounts receivable turnover; assume all sales are credit sales
d. Receivable collection period; assume all sales are credit sales and use 365 days
2. Write a memo explaining to the company owner which ratios improved from 2015 to 2016, which ratios deteriorated, and which items in the financial statements 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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2015 2016 2014 Balance Sheet Current Assets: $ 6,700 $ 8,000 $ 6,100 25,000 Cash Short-term Investments 13,300 31,200 12,800 Receivables, Net 32,400 21,600 31,500 Inventory Prepaid Expenses Total Current Assets 43,400 42,600 2,700 2,000 4,700 96,600 110,700 76,700 $ 84,000 $ 86,000| $ 63,500 Total Current Liabilities Income Statement $505,300 $424,900 $524,700 275,100 Sales Revenue Cost of Goods Sold 265,000 241,800