The comparative financial statements of Sunset Pools Inc. for 2020, 2019, and 2018 included the following selected data:

{Requirements}
1. As a financial advisor to an investor of Sunset Pools, identify or calculate the information for 2020 and 2019 that would be relevant in determining the company's liquidity position, and specify how each item of information is relevant to your decision.
2. Write a memo explaining to your client the results of your evaluation including recommendations that will help Sunset Pools improve its liquidity.

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Balance sheet: Current assets: Cash. Short-term investments.. Receivables, net of allowance for uncollectible accounts of $27, $21, and $15, respectively Inventories...... Prepaid expenses.. Total current assets Total current liabilities. Income statement: Net sales 2020 (in millions) 2019 2018 $ 86 $ 60 70 130 174 112 243 245 278 330 375 362. 10 25 26 $ 799 $ 879 $ 848 $ 403 $ 498 $ 413 $2,898 $2,727 $2,206