The comparative financial statements of Lakeland Pools, Inc., for 2013, 2012, and 2011 included the following select data:

Requirements
1. Compute these ratios for 2013 and 2012:
a. Current ratio
b. Quick (acid-test) ratio
c. Days€™ sales in receivables
2. Which ratios improved from 2012 to 2013 and which ratios deteriorated? Is this trend favorable or unfavorable?
3. Recommend two ways for Lakeland Pools, Inc., to improve cash flow fromreceivables.

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(In millions) 2012 2013 2011 Balance sheet Current assets: S 90 130 S 70 165 S 40 105 Short-term investments Receivables, net of allowance for doubtful accounts of $7, $6, and $4, respectively Inventories Prepaid expenses Total current assets.... 260 325 30 S 850 S 610 290 365 250 315 S 930 S 750 S 650 Total current liabilities Income statement Net sales S5,860 55,120 $4,230