Moore Corporation reported the following items at December 31, 2021, and 2020: 

Requirements

1. Compute the company’s (a) quick (acid-test) ratio and (b) days’ sales outstanding for 2021. Evaluate each ratio value as strong or weak. All sales are on account with terms of net 30 days.

2. Recommend two ways for Moore to speed up its cash flow from receivables.

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1234567 A1 8 9 10 Balance Sheets (Summarized) 5 Current assets: Cash Marketable securities Accounts receivable, net Inventory Other current assets 11 Long-term assets 12 Total assets Year-end 2021 2020 13 14 Income statement (partial): 2021 15 Sales Revenue $ 900,000 17 E 2020 Current liabilities: $ 18,000 $ 14,000 Accounts payable 20,000 9,000 Other current liabilities 53,000 67,000 Long-term liabilities $ 19,000 $20,500 108,000 110,000 20,000 21,000 190,000 186,000 3,000 3,000 Stockholders' equity 137,000 137,500 10,000 $ 284,000 $289,000 Total liabilities and equity $ 284,000 $289,000 Year-end 2021