The comparative financial statements of Perfection Cosmetic Supply for 2016, 2015, and 2014 include the data shown here:

Requirements
1. Compute these ratios for 2016 and 2015:
a. Acid-test ratio (Round to two decimals.)
b. Accounts receivable turnover (Round to two decimals.)
c. Days€™ sales in receivables (Round to the nearest whole day.)
2. Considering each ratio individually, which ratios improved from 2015 to 2016 and which ratios deteriorated? Is the trend favorable or unfavorable for the company?

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2016 2015 2014 Balance sheet-partial Current Assets: Cash Short-term investments Accounts Receivable, Net Merchandise Inventory Prepaid Expenses Total Current Assets Total Current Liabilities 135,000 270,000 370,000 70,000 905,000 540,000 60,000 80,000 $ 60,000 150,000 280,000 340,000 20,000 870,000 570,000 130,000 260,000 315,000 35,000 800,000 690,000 Income statement partial Net Sales (all on account) 5,860,000 5,120,000 4,200,000