The following data are from the 2012 financial report of Generic Clothing Company:

a. Based upon the above data, compute the following for Generic Clothing Company for both 2011 and 2012:(1) The current ratio(2) The quick ratiob. Assume that net credit sales for the years ended December 31, 2011, and 2012, were $780,000 and &800,000, respectively, and that the balance of accounts receivable as or January 1, 2012, was $100,000. Compute the receivables turnover and days outstanding for both years.c. Does it appear that the solvency position of the company improved or worsened from 2012 to 2012?Explain.

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2012 2011 Current assets: Cash S 15,00 225,000 90,000 50,00 20.000 S4INI,000 S 30,000 10,000 95,000 Short-term marketable securities Accounts receivable (net) Inventory Prepaid insurance Total current assets 225,000 25,000 S385.000 Current liabilities: S 75,000 10,000 375,000 Accounts payable Wages payable Current portion of long-term debt Total current liabilities S 60,000 10,000 100,000 $460,000 S170,000