The following data are from the 2015 financial report of Generic Clothing Company:

a. Based upon the above data, compute the following for Generic Clothing Company for both 2014 and 2015:
(1) The current ratio
(2) The quick ratio
b. Assume that net credit sales for the years ended December 31, 2014, and 2015, were $780,000 and $800,000, respectively, and that the balance of accounts receivable as of January 1, 2014, 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 2014 to 2015? Explain.

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2015 2014 Current assets Cash Short-term marketable securities Accounts receivable (net) Inventory Prepaid insurance S 15,000 225,000 90,000 50,000 20,000 $400,000 30,000 10,000 95,000 225,000 25,000 $385,000 Total current assets Current liabilities: Accounts payable Wages payable Current portion of long-term debt S 75,000 10,000 375,000 $460,000 $60,000 10,000 100,000 $170,000 Total current liabilities