5-63 Please show all work.

(15-25 min.) P 5-63A LO 1,7 P5-63A. (Learning Objectives 1, 7: Show how to speed up cash flow from receivables; evalu- ate liquidity using ratios) The comparative financial statements of Sunset Pools, Inc., for 2023, 2022 and 2021 included the following select data: In millions) 2022 2021 $ 60 175 $40 110 2023 Balance sheet Current assets Cash.... $85 Investment in trading securities...... 160 Receivables, net of allowance for uncollectible accounts of $7. S6, and $4, respectively 270 Inventories........ 360 Prepaid expenses 60 Total current set... $ 935 Total current liabilities $ 620 Income statement Net sales all on account)..... $7,685 260 335 45 240 320 70 $ 875 $780 $ 635 $ 670 $5,500 $5,110 Requirements 1. Compute the following ratios for 2023 and 2022: a. Current ratio b. Quick (acid-test) ratio c. Days' sales outstanding 2. Which ratios improved from 2022 to 2023 and which ratios deteriorated? Are each of the trends favorable or unfavorable? 3. Recommend two ways for Sunset Pools to improve cash flows from receivables