- Need :

1) Acid Test

2) Days Sales Outstanding

3) Which ratios improved from 2019 to 2020 and which ratios deteriorated? Are each of the trends favorable or unfavorable?

The comparative financial statements of Lomax Pools, Inc., for 2020, 2019, and 2018 included the following select data: E: (Click the icon to view the comparative financial data.) Read the requirements Data Table Requirement 1. a. Compute the current ratios for 2020 and 2019. (R 2020 2019 (In millions) 2020 2019 2018 Current ratio = Balance sheet Current assets: Cash $ 95 $ 85 $ 60 155 170 135 Investment in trading securities Receivables, net of allowance for uncollectible accounts of $7, $6, and $4, respectively 250 240 260 Inventories 350 320 15 335 60 75 Prepaid expenses Total current assets $ 925 $ 830 $ 850 Total current liabilities $ 580 $ 630 $ 650 Income statement Net sales (all on account) $ 7,105 $ 5,750 $ 4,380