Valley Bleu Ltée reported the following current accounts at December 31, 2013 (amounts in…

Valley Bleu Ltée reported the following current accounts at December 31, 2013 (amounts in thousands): a. Cash …………………………………………………………………………………………… $1,700 b. Receivables ………………………………………………………………………………….. 5,600 c. Inventory …………………………………………………………………………………….. 1,800 d. Prepaid expenses ………………………………………………………………………….. 800 e. Accounts payable ………………………………………………………………………….. 2,400 f. Unearned revenue …………………………………………………………………………. 1,200 g. Accrued expenses payable ……………………………………………………………… 1,700 During 2014, Valley Bleu completes these transactions: • Used inventory of $3,800 • Sold services on account, $6,500 • Depreciation expense, $400 • Paid for accrued expenses, $500 • Collected from customers on account, $7,500 • Accrued expenses, $1,300 • Purchased inventory of $3,500 on account • Paid on account, $5,000 • Used up prepaid expenses, $600 Compute Valley Bleu s current ratio at December 31, 2013, and again at December 31, 2014. Did the current ratio improve or deteriorate during 2014? Comment on the company s current rati