Botany Clothiers reported the following amounts in its 2020 financial statements. The 2019 figures are given for comparison.

{Requirements}
1. Compute Botany's acid-test ratio at the end of 2020. Round to two decimal places. How does the acid-test ratio compare with the industry average of 0.95 ?
2. Compare Botany's days' sales in receivables measure for 2020 with the company's credit terms of net 30 days. Assume all sales are on account.
3. Recommend two ways that Botany Clothiers can speed up cash flow from its accounts receivable.

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1 B 2020 C o E F 2019 2 Current assets: 3 Cash $ 9,000 $ 7,000 4 Short-term investments 12,000 10,000 5 Accounts receivable $ 60,000 $ 54,000 6 Less allowance for uncollectibles (5,000) 55,000 (5,000) 49,000 7 Inventory 170,000 172,000 8 9 10 11 12 Prepaid insurance Toral curren: assets Total current liabilities Net sales 1,000 $247,000 $ 80,000 $803,000 $239,000 $ 70,000 $750,000 1,000