Use the following comparative income statements and balance sheets to complete the required ratio analysis Comparative Income Statement For the Years Ended December 31, 20 C and 20 B 20 C 20 B Net sales $965,400 $1,028,600 Cost of goods sold 515,100 590,300 Gross profit $450,300 $ 438,300 Operating expenses Selling expenses $142,000 $ 173,400 Administrative expenses 150,200 182,400 Interest expense 29,300 34,100 Total operating expenses $321,500 $ 389,900 Income tax expense 45,500 18,200 Total expenses $367,000 $ 408,100 Net income $ 83,300 $ 30,200 Comparative Balance Sheets December 31, 20 C and 20 B Assets 20 C 20 B Cash $ 45,100 $ 48,500 Accounts receivable (net) 59,800 101,500 Merchandise inventory 150,900 171,600 Property, plant, and equipment (net) 710,500 808,800 Total assets $966,300 $1,130,400 Liabilities and Stockholders' Equity Accounts payable $108,200 $ 151,600 Notes payable (due 6 30 D) 70,000 70,000 Bonds payable (45 due each June) 154,000 280,000 Common stock, $10 par value 420,000 420,000 Retained earnings 214,100 208,800 Total liabilities and stockholders' equity $966,300 $1,130,400 Additional information All sales are made on account Balances of selected accounts for December 31, 20 A are accounts receivable (net), $73,800 merchandise inventory, $153,100 total assets, $906,900 common stockholders' equity, $527,200 and common shares outstanding, 42,000 20 C 20 B Number of common shares 42,000 42,000 Dividends paid $44,400 $49,000 Required How can you prepare the liquidity analysis by calculating for 20 B and 20 C the (a) current ratio, (b) quick ratio, (c) accounts receivable turnover, and (d) merchandise inventory turnover Indicate whether there has been an improvement or not from 20 B to 20 C Round all answers to two decimal places 20 C 20 B Improvement a Current ratio Yes or No b Quick ratio Yes or No c Accounts receivable turnover and average collection period Yes or No d Merchandise inventory turnover and average number of days to sell Yes or No I need help Please walk me through the entire problem

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Use the following comparative income statements and balance sheets to complete the required ratio analysis. Comparative Income Statement For the Years Ended December 31, 20-C

Use the following comparative income statements and balance sheets to complete the required ratio analysis.

Comparative Income Statement For the Years Ended December 31, 20-C and 20-B
	20-C	20-B
Net sales	$965,400	$1,028,600
Cost of goods sold	515,100	590,300
Gross profit	$450,300	$ 438,300
Operating expenses:
Selling expenses	$142,000	$ 173,400
Administrative expenses	150,200	182,400
Interest expense	29,300	34,100
Total operating expenses	$321,500	$ 389,900
Income tax expense	45,500	18,200
Total expenses	$367,000	$ 408,100
Net income	$ 83,300	$ 30,200

Comparative Balance Sheets December 31, 20-C and 20-B
Assets	20-C	20-B
Cash	$ 45,100	$ 48,500
Accounts receivable (net)	59,800	101,500
Merchandise inventory	150,900	171,600
Property, plant, and equipment (net)	710,500	808,800
Total assets	$966,300	$1,130,400

Liabilities and Stockholders' Equity
Accounts payable	$108,200	$ 151,600
Notes payable (due 6/30/-D)	70,000	70,000
Bonds payable (45% due each June)	154,000	280,000
Common stock, $10 par value	420,000	420,000
Retained earnings	214,100	208,800
Total liabilities and stockholders' equity	$966,300	$1,130,400

Additional information: All sales are made on account. Balances of selected accounts for December 31, 20-A are accounts receivable (net), $73,800; merchandise inventory, $153,100; total assets, $906,900; common stockholders' equity, $527,200; and common shares outstanding, 42,000.

	20-C	20-B
Number of common shares	42,000	42,000
Dividends paid	$44,400	$49,000

Required: How can you prepare the liquidity analysis by calculating for 20-B and 20-C the (a) current ratio, (b) quick ratio, (c) accounts receivable turnover, and (d) merchandise inventory turnover. Indicate whether there has been an improvement or not from 20-B to 20-C. Round all answers to two decimal places.

		20-C	20-B	Improvement?
a.	Current ratio	____	____	Yes or No
b.	Quick ratio	____	____	Yes or No
c.	Accounts receivable turnover and average collection period	____	____	Yes or No
d.	Merchandise inventory turnover and average number of days to sell	____	____	Yes or No