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

Requirements
1. Compute these ratios for 2017 and 2016:
a. Current ratio
b. Acid-test ratio
c. Days' sales in receivables
2. Write a memo explaining to top management which ratio values improved from 2016 to 2017 and which ratio values deteriorated. State whether the overall trend is favourable or un-favourable, and give the reason for your evaluation.
3. Recommend two ways for Sunset Pools to improve cash flow from receivables?

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(in millions) 2017 2016 2015 Balance sheet: Current assets: Cash Short-term investments Receivables, net of allowance for uncollectible accounts $ 86 130 60 70 112 174 245 375 25 of $27, $21, and $15, respectively 278 362 26 $ 799 879 848 $ 403 $498 413 243 330 10 Inventories expenses Total current assets Total current liabilities Income statement: Net sales $2,898 $2,727 $2,206