Selected financial data for Amberjack Corporation follows.

a. Calculate the current and quick ratio at the end of each year. How has the company's short-term liquidity changed over this period?

b. Assuming a 365-day year for all calculations, compute the following:

i. The collection period each year based on sales.

ii. The inventory turnover and the payables period each year based on cost of goods sold.

iii. The days' sales in cash each year.iv. The gross margin and profit margin each year.

c. What do these calculations suggest about the company's performance?

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($ thousands) Year 1 Year 2 271,161 249,181 Sales 457,977 341,204 Cost of goods sold (155,034) (58,405) Net income (403,509) (20,437) Cash flow from operations Cash 341,180 268,872 36,900 35,298 Marketable securities 341,762 Accounts receivable 21,011 Inventories 6,473 72,106 Total current assets 710,427 413,176 Accounts payable 28,908 22,758 Accrued liabilities 44,310 73,218 124,851 Total current liabilities 147,610