The financial statements of Omni News, Inc., include the following items:

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 nextyear?

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2014 2013 2012 Balance sheet: Net receivables Inventory Prepaid expenses Total current assets Accounts payable Total current liabilities 34,000 40,000 12,000 23,000 71,000 77,000 5,000 211,000 216,000 65,000 96,000 68,000 86,000 11,000 60,000 62,000 80,000 50,000 Income statement: $481,000 ..67,000