The comparative financial statements of SunShine Pools, Inc., for 2015, 2014, and 2013 included the following select data:

Requirements
1. Compute these ratios for 2015 and 2014:
a. Current ratio
b. Quick (acid-test) ratio
c. Days’ sales in receivables
2. Which ratios improved from 2014 to 2015 and which ratios deteriorated? Is this trend favorable or unfavorable?
3. Recommend two ways for SunShine Pools to improve cash flows fromreceivables.

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(In millions) 2015 2014 2013 Balance sheet Current asscts: S 100 145 S 80 165 S 60 120 Investment in Trading Securities Receivablcs, net of allowance for doubtful accounts of $7, $6, and S4, respectivcly 270 365 60 Total current assets... 940 260 330 230 300 4.5 S 755 S 685 Prepaid expenscs S 840 S 650 Income statement Nct salcs S5,940 S5,200 $4,320