(Learning Objective 5: Using ratio data to evaluate a company's financial position) P eomparative financial statements of Gold Pools, Inc., for 20X7, 20x6, and 20X5 included the following select data (In milions) 20x6 20x7 20x5 Balance sheet Current assets 7080 160 so 110 Short-term investments Receivables, net of allowance for doubtful accounts of 7, 6, and 4, respectively Inventories Prepaid expenses. 145 290 360 70 Total current assets ....935 Total current liabiiti0 230 310 40 260 345 10 e 935855740 . 560 610 680 Income statement Net sales...5,8905,1504,200 l 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