7) The following information is from Carter Corp.s year-end financial statements.:

Cash	$150
Accounts Receivable	$175
Short-Term Investments	$300
Prepaid Expenses	$75
Land	$1,000
Equipment	$950
Accumulated Depreciation	$625
Accounts Payable	$275
Salaries Payable	$25
Interest Payable	$100
Long-Term Notes Payable	$300
Long-Term Loans Payable	$400
Total Revenues	$2,500

a) Calculate Carters current ratio, quick (acid test) ratio, and days sales ratio for the year. (Last year Carters accounts receivables were $225.)

b) Last year, Carters current ratio was 2, Carters quick ratio was 1.4, and Carters days sales ratio was 31 days. Comment on whether these ratios have improved or worsened this year.