P5-66B. (Learning Objectives 6, 7: Show how to speed up cash flow from receivables; evaluate liquidity using ratios) The comparative financial statements of Gold Pools, Inc., for 2017, 2016, and 2015 included the following select data: (In millions) 2017 2016 2015 Balance sheet Current assets: s 70 S 60 175 50 110 Cash Investment in trading securities..150 Receivables, net of allowance for doubtful accounts of $7, $6, and $4, respectively Inventories Prepaid expenses 270 350 70 260 345 20 240 300 45 s745 650 $6,570 S,110 $5,110 s860 S 620 Income statement Net sales (all on account) Requirements 1. Compute these ratios for 2017 and 2016: a. Current ratio b. Quick (acid-test) ratio c. Days' sales outstanding 2. Which ratios improved from 2016 to 2017 and which ratios deteriorated? Is this trend fa- vorable or unfavorable? 3. Recommend two ways for Gold Pools to improve cash flow from receivables