The comparative financial statements of Sopa Company for 2017, 2016, and 2015 included the following selected data:

Required
1. Compute these ratios for 2017 and 2016:
a. Current ratio
b. Acid-test ratio
c. Days' sales in receivables
2. Write a brief memo explaining to Tony Crane, owner of Sopa Company, which ratio values showed improvement from 2016 to 2017 and which ratio values deteriorated.
Discuss whether this trend is favorable or unfavorable for the company.

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2017 2016 2015 (in thousands) Balance Sheet Current assets: Cash Short-term investments Receivables, net Inventories Prepaid expenses $ 80 280 760 1,680 120 $ 2,920 $1,920 S 80 400 600 1,520 120 $ 2,720 S 1,640 $ 40 240 480 1,360 80 $2,200 $1,520 Total current assets Total current liabilities Income Statement Sales revenue $10,400 $10,000 $7,600