At the beginning of 2000, Fresco Manufacturing Company had accounts receivable (net) of $36,000. During 2000, Fresco made net sales of $420,000 under terms of 1/10, n/30,

while operating on a 300-day business year. At the end of 2000, the company had current liabilities of $60,000, as well as the following current assets:
Cash and cash equivalents $12,000 Accounts receivable (net) 40,000 Notes receivable 12,000 Inventories 83,000 Marketable securities 6,000 Prepaid items 4,000 Required: (1) Compute Fresco's quick ratio at the end of 2000. How does this compare with the industry average of 1.05?
(2) Compute Fresco's accounts receivable turnover ratio and the number of days in its collection period. What do you think of its collection efforts?

 TYK-1