P99B The comparative financial statements of Kaur Investments for 2020, 2019, and 2018 included the selected data shown below:

1-23 Full Alternative Text Required Compute these ratios for 2020 and 2019, assuming that all sales are on account:

Current ratio (round to two decimal places)

Acid-test ratio (round to two decimal places)

Days sales in receivables (round to nearest full day)

Accounts receivable turnover (round to nearest full turn)

Write a memo explaining to Amarpreet Kaur, owner of Kaur Investments, which ratio values showed improvement from 2019 to 2020 and which ratio values showed deterioration. Discuss whether these factors convey a favourable or an unfavourable impression about the company.

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Using ratio data to evaluate a companys financial position