Moore Corporation reported the following items at December 31, 2018, and 2017:

Requirements

1. Compute the company’s (a) quick (acid-test) ratio and (b) days’ sales outstanding for 2018. 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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A1 Balance Sheets (Summarized) Year-end 2017 Year-end 2018 2017 3 2018 4 5 Current assets: Cash Current liabilities: Accounts payable Other current liabilities $ 18,000 Ş 14,000 | 20,000 53,000 190,000 3,000 $ 19,000 $ 20,500 108,000 110,000 20,000 21,000 9,000 67,000 Long-term liabilities 186,000 3,000 Stockholders' equity 10,000 Marketable securities Accounts receivable, net Inventory Other current assets 7 137,000 137,500 10 11 Long-term assets 12 Total assets $ 284,000 $ 289,000 Total liabilities and equity $ 284,000 $ 289,000 13 14 Income statement (partial): 2018 15 Sales Revenue $ 900,000 17