The following data are from the 2017 financial report of Generic Clothing Company:

a. Based upon the above data, compute the following for Generic Clothing Company for both 2016 and 2017:
(1) The current ratio
(2) The quick ratio
b. Assume that net credit sales for the years ended December 31, 2016, and 2017, were $780,000 and $800,000, respectively, and that the balance of accounts receivable as of January 1, 2016, 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 2016 to 2017? Explain.

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2016 2017 Current assets: $ 15,000 $ 30,000 Cash Short-term investments 225,000 10,000 Accounts receivable (net) 90,000 95,000 225,000 Inventory 50,000 Prepaid insurance 20,000 25,000 $400,000 $385,000 Total current assets Current liabilities: $ 75,000 $ 60,000 Accounts payable Salaries and wages payable 10,000 10,000 Notes payable 375,000 100,000 $460,000 $170,000 Total current liabilities