The comparative financial statements of Lakeland Cosmetic Supply for Year 2 and Year 1 include the following select data: (Click the icon to view the comparative financial data.) Requirements 1. Compute these ratios for Year 2 and Year 1: a. Current ratio b. Acid-test ratio c. Average settlement period for trade payables (using year-end figures) 2. Which of the first two ratios improved from Year 1 to Year 2 and which ratios deteriorated? How does this trend affect the company? Requirement 1 a. Calculate the current ratio. (Round your final answer to 2 decimal places. If the answer is less than 1, place a '0' in front of the decimal point.) Year 2 Current ratio Year 1 :1 b. Calculate the acid-test ratio. (Round your final answer to 2 decimal places. If the answer is less than 1, place a '0' in front of the decimal point.) Year 2 Acid-test ratio Year 1 :1 c. Next, calculate the settlement period for trade payables (Round all calculations to the nearest complete day.) Year 2 Year 1 days days Settlement period for trade payables (creditors) Requirement 2 The first two ratios from Year 1 to Year 2. This trend the company. More info (in thousands) Year 2 Year 1 Statement of financial position Current assets: Inventories 360 335 Prepaid expenses 70 20 Trade receivables 290 260 Cash 70 60 140 170 Short term investments Total current assets 930 845 Total current liabilities* 590 620 (*all trade payables/creditors) Income statement Credit purchases 5,870 5,120 Print Done