The comparative financial statements of Kenmore Pools. Inc. for 2017, 2016, and 2015 included the following select data:

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 favorable or unfavorable?
3. Recommend two ways for Kenmore Pools to improve cash flows from receivables.

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(In millions) 2017 2016 2015 Balance sheet Current assets: $ 70 80 40 125 t in trading securities.130 165 Receivables, net of allowance for doubtful accounts of $7, $6, 230 300 50 885 860 745 Total current liabilities560 620 660 and $4, respectively Inventories Prepaid expenses. Total current assets 260 325 30 270 350 Income statement Net sales (all on account$7,665 $5,110 $4,015