Cox's, a department store, reported the following amounts in its 19X8 financial statements. The 19X7 figures are given for comparison.

\section*{Required}
1. Determine whether the acid-test ratio improved or deteriorated from \(19 \mathrm{X} 7\) to \(19 \mathrm{X} 8\). How does Cox's acid-test ratio compare with the industry average of 0.80 ?
2. Compare the days' sales in receivables measure for \(19 \mathrm{X} 8\) with the company's credit terms of net 30 .

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Current assets: Cash. Short-term investments.. Accounts receivable Less Allowance for uncollectibles. Inventory........ Prepaid insurance. Total current assets. Total current liabilities. Net sales............... 19X8 19X7 $ 14,000 $ 9,000 13,000 11,000 $80,000 $74,000 7,000 73,000 6,000 68,000 192,000 189,000 2,000 2,000 294,000 279,000 114,000 107,000 813,000 762,000