Algonquin Carnets reported the following amounts in its 2018 financial statements. The 2017 figures are given for comparison Tool Content con to view the comparative financial information.) Read the requirements. Requirement 1. Calculate Algonquin's acid-test ratio for 2018. (Round to two decimals.) Determine whether Algonquin's acid-test ratio improved or deteriorated from 2017 to 2018. How does Algonquin's acid-test ratio compare with the industry average of 0.80? (Abbreviations used: Cash = Cash including cash equivalents; ST invest. = short-term investments. Round the acid test ratio to two decimals, X.XX.) Calculate the acid-test ratio for both years. = Acid-test ratio 2018 2017 Data Table 2018 Balance sheet-partial Current Assets: Cash $ 14,500 11,000 Short-term Investments Accounts Receivable Less: Allowance for Bad Debts Merchandise Inventory $ 60,000 (6,000) 8,500 $ 22,000 $ 73,000 54,000 _(5,000) 193,500 5,500 68,000 189,500 5,500 Prepaid Insurance 283,500 104,000 288,500 106,000 Total Current Assets Total Current Liabilities Income statement-partial Net Sales (all on account) 677,100 734,000 Print Done i Requirements 1. Calculate Algonquin's acid-test ratio for 2018. (Round to two decimals.) Determine whether Algonquin's acid-test ratio improved or deteriorated from 2017 to 2018. How does Algonquin's acid-test ratio compare with the industry average of 0.80? 2. Calculate Algonquin's accounts receivable turnover ratio. (Round to two decimals.) How does Algonquin's ratio compare to the industry average accounts receivable turnover of 10? 3. Calculate the days' sales in receivables for 2018. (Round to the nearest day.) How do the results compare with Algonquin's credit terms of net 30? Print Done