The financial statements of Adventure News, Inc., include the following items:

{Requirements}
1. Compute the following ratios for 2020 and 2019

a. Current ratio

b. Quick (acid-test) ratio

c. Inventory turnover and days' inventory outstanding (DIO)

d. Accounts receivable turnover

e. Days' sales in average receivables or days' sales outstanding (DSO)

f. Accounts payable turnover and days' payable outstanding (DPO). Use cost of goods sold in the formula for accounts payable turnover g. Cash conversion cycle (in days)
When computing days, round your answer to the nearest whole number.
2. Evaluate the company's liquidity and current debt-paying ability for 2020. Has it improved or deteriorated from 2019 ?
3. As a manager of this company, what would you try to improve next year?

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2020 2019 2018 Balance sheet: Cash.. Short-term investments.. Net receivables Inventory.. Prepaid expenses. $ 24,000 $ 30,000 12,000 21,000 58.000 71,000 40,000 90,000 73,000 59,000 10,000 10,000 Total current assets. 194,000 205,000 Accounts payable.... 40.000 70,000 30,000 Total current liabilities. 133,000 95,000 Income statement: Net credit sales $491,000 $506,000 Cost of goods sold. 277,000 288,000