Question: (Learning Objective 5: Using ratio data to evaluate a companys fi nancial position) The comparative fi nancial statements of Highland Pools, Inc., for 20X7, 20X6,

(Learning Objective 5: Using ratio data to evaluate a company’s fi nancial position)

The comparative fi nancial statements of Highland Pools, Inc., for 20X7, 20X6, and 20X5 included the following select data:

❙ Requirements 1. Compute current ratio and days’ sales in receivables for 20X7 and 20X6:
2. Which ratio(s) improved from 20X6 to 20X7 and which ratio(s) deteriorated? Is this trend favorable or unfavorable?

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