The comparative financial statements of Highland Pools, Inc., for 2011, 2010, and 2009 included the following select data:

Requirements
1. Compute these ratios for 2011 and 2010:
a. Current ratio
b. Acid-test ratio
c. Days sales in receivables
2. Which ratios improved from 2010 to 2011 and which ratios deteriorated? Is this trend favorable orunfavorable?

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(In millions) 2011 2010 Balance sheet Current assets: Cash 80 Short-term investments.145 70 170 60 120 Receivables, net of allowance 270 355 60 Total current assets..910 Total current liabilities. 580 for doubtful accounts of $7, $6, and $4, respectively Inventories Prepaid e 240 300 345 30 620 690 Income statement $5,880 5,130 $4,220