The consolidated financial statements of Nestl are as follows:

Nestle Group Consolidated Balance Sheet	At December 31
(Adapted, in millions of Swiss Francs, CHF)	2016	2015
Cash and cash equivalents	7,990	4,884
Short-term investments	1,306	921
Inventories	8,401	8,153
Trade and other receivables	12,411	12,252
Prepayments and accrued income	573	583
other current assets	1,361	2,641
Total current assets	32,042	29,434
Property, plant and equipment	27,554	26,576
Intangible assets and goodwill	53,404	52,008
Financial assets and other investments	16,428	14,094
All other non-current assets	2,473	1,880
Total non-current assets	99,859	94,558
Total assets	131,901	123,992
Short-term borrowings	12,118	9,629
Trade and other payables	18,629	17,038
Accruals and deferred income	3,855	3,673
Provisions	620	564
All other current liabilities	2,295	2,417
Total current liabilities	37,517	33,321
Long-term borrowings	11,091	11,601
Provisions and other payables	5,027	4,330
All other non-current liabilities	12,285	10,754
Total non-current liabilities	28,403	26,685
Total liabilities	65,920	60,006
Share capital	311	319
Treasury shares	(990)	(7,489)
Retained earnings	82,870	88,014
Other equity items	(16,210)	(16,858)
Total equity	65,981	63,986
Total liabilities and equity	131,901	123,992

Nestle Group Consolidated Income Statement	At December 31
(Adapted, in millions of Swiss Francs, CHF)	2016	2015
Sales	89,469	88,785
Other revenue	317	298
Cost of goods sold	(44,199)	(44,730)
Distribution expenses	(8,059)	(7,899)
Marketing and administration expenses	(21,485)	(20,744)
Research and development costs	(1,736)	(1,678)
Other trading and operating income	453	204
Other trading and operating expenses	(1,597)	(1,828)
Operating profit	13,163	12,408
Financial income	121	101
Financial expense	(758)	(725)
Taxes	(4,413)	(3,305)
Income from associates and joint ventures	770	988
Profit for the year	8,883	9,467

Required

(a)Does Nestl appear to be improving or declining in the following dimensions? Briefly describe your perception based on your calculation and review of these ratios and results

(i)The ability to pay its current liabilities

(ii)The ability to sell inventory and collect receivables