P4-48B The comparative financial statements of New World Piano Company for 2020, 2019, and 2018 included the following selected data: (in millions) 2020 2019 2018 Balance sheet: Current assets: Cash $ 67 $ 66 $ 62 Short-term investments 73 81 70 226 174 195 Receivables, net of allowance for uncollectible accounts of $7, S6, and $4, respectively 4 Cash and Receivables Short-term investments 73 81 70 Receivables, net of allowance for uncollectible 226 174 195 accounts of $7. $6, and $4, respectively Inventories 398 375 349 Prepaid expenses 22 19 16 22 S 786 Total current assets $ 786 $ 715 $ 692 Total current liabilities $ 420 $ 405 $ 388 $ 388 Income statement: Net sales $2,071 $2,005 $1,965 Learning Objectives 6 7 Use ratio data to evaluate a company's financial position CT Requirements 1. As a financial advisor to an investor in New World Piano Company, identify or calculate the information for 2020 and 2019 that would be relevant in determining the company's liquidity position, and specify how each piece of information is relevant to your decision. 2. Write a memo explaining to your client the results of your evaluation including recommendations that will help New World Piano Company improve its liquidity