Th e comparative fi nancial statements of True Beauty Pools, Inc., for 2013, 2012, and 2011 included the following select data:

Requirements
1. Compute these ratios for 2013 and 2012:
a. Current ratio
b. Quick (acid-test) ratio
c. Days€™ sales in receivables
2. Which ratios improved from 2012 to 2013 and which ratios deteriorated? Is this trend favorable or unfavorable?
3. Recommend two ways for True Beauty Pools to improve cash flows fromreceivables.

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(In millions) 2013 2012 2011 Balance sheet Current assets: Cash Short-term investments135 Receivables, net of allowance S 80 S 60 S 40 110 9 155 2765 for doubtful accounts of $7, S6, and $4, respectively 260 330 300 70 Total current liabilities...S 590 $5,850 repaid ex S 920 820 735 S 630 690 Total current assets Income statement S5,110 $4,210