Burnsboro Ltd, a gift store, reported the following amounts in its 2020 financial statements The 2019 figures are given for comparison (Click the icon to view the comparative financial information.) Required 1. Determine whether Burnsboro Ltd 's acid-test ratio improved or detenorated from 2019 to 2020 How does Burnsboro Ltd 's acid-test ratio compare with the industry average of 0 90? 2. Compare the days' sales in receivables measure for 2020 with the company's credit terms of net 30 What action, if any, should Burnsboro Ltd take? 3. Indicate the most likely effect of the following changes in credit policy on the days' sales in receivables (+ for increase, - for decrease, and NE for no effect) a. Granted credit to people with poor credit history b. Increased collection techniques or methods c. Granted credit with discounts for early payment Incorrect Requirement 1. Determine whether Burnsboro Ltd 's acid-test ratio improved or deteriorated from 2019 to 2020 How does Burnsboro Lid 's acid-test ratio compare with the industry average of 0 902 Calculate Burnsboro's acid-test ratios for 2020 and 2019 (Round the ratios to two decimal places.) 2020 2019 Acid-test ratios Financial information - X 2020 2019 Current assets Cash $ 26,000 40,000 Short-term investments 52,000 28,000 Accounts receivable $ 148,000 $ 120,000 34,000 Less Allow for doubtful accts 86,000 32,000 116,000 Inventory 396,000 6,500 390,000 6.500 Prepaid insurance 566,500 $ 580,500 Total current assets Total current liabilities S 234.000 240 000 Net sales $ 1.896 000 $ 1.900.000 Print Done