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Cullumber Inc. operates gaming stores across the country. Selected comparative financial statement data are shown below. CULLUMBER INC. Balance Sheet (partial) December 31 (in millions)

Cullumber Inc. operates gaming stores across the country. Selected comparative financial statement data are shown below.

CULLUMBER INC. Balance Sheet (partial) December 31 (in millions)
2021 2020 2019

Current assets

Cash

$790 $91 $60

Short-term investments

59 58 39

Accounts receivable

679 581 495

Inventory

897 524 573

Prepaid expenses

44 51 28

Total current assets

$2,469 $1,305 $1,195

Total current liabilities

$1,888 $823 $745

Additional information:
(in millions) 2021 2020

Net credit sales

$8,257 $3,939

Cost of goods sold

5,327 2,646

Calculate the following liquidity ratios for 2021 and 2020. (Round current ratio and acid-test ratio to 2 decimal places, e.g. 0.75:1, receivables turnover and inventory turnover to 1 decimal place, e.g. 52.7 and collection period, days sales in inventory and operating cycle to 0 decimal places, e.g. 125.)

2021 2020

Current ratio

enter Current ratio rounded to 2 decimal places :1 enter Current ratio rounded to 2 decimal places :1

Acid-test ratio

enter Acid-test ratio rounded to 2 decimal places :1 enter Acid-test ratio rounded to 2 decimal places :1

Receivables turnover

enter Receivables turnover in times rounded to 1 decimal place times enter Receivables turnover in times rounded to 1 decimal place times

Collection period

enter a number of days rounded to 0 decimal places days enter a number of days rounded to 0 decimal places days

Inventory turnover

enter Inventory turnover in times rounded to 1 decimal place times enter Inventory turnover in times rounded to 1 decimal place times

Days sales in inventory

enter a number of days rounded to 0 decimal places days enter a number of days rounded to 0 decimal places days

Operating cycle

enter a number of days rounded to 0 decimal places days enter a number of days rounded to 0 decimal places days

Indicate whether each of the liquidity ratios calculated in part (a) is better or worse in 2021.

Current ratio

select an option BetterWorse

Acid-test ratio

select an option BetterWorse

Receivables turnover

select an option BetterWorse

Collection period

select an option BetterWorse

Inventory turnover

select an option BetterWorse

Days sales in inventory

select an option BetterWorse

Operating cycle

select an option BetterWorse

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