The comparative financial statements of Perfection Taco Restaurants for 2013, 2012, and 2011 include the following selected data:

Requirements
1. Compute these ratios for 2013 and 2012:
a. Quick ratio.
b. Accounts receivable turnover. Assume all sales are credit sales.
2. Write a memo explaining to the company owner which ratios improved from 2012 to 2013, 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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In Thousands 2012 2013 2011 Balance Sheet Current Assets Cash Short-term Investments Receivables, Net of Allowance for $ 82 $ 80 178 55 125 130 Doubtful Accounts of $7, $6 and $4, respectively Inventory Prepaid Expenses Total Current Assets 290 434 24 305 335 256 315 30 928 960 806 780 800 625 Total Current Liabilities Income Statement Sales Revenue Cost of Goods Sold $5,223 $5,039$4,250 2,490 2,768 2,650