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Comanche Carpets reported the following amounts in its 2018 financial statements. The 2017 figures are given for comparison (Click the icon to view the comparative

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Comanche Carpets reported the following amounts in its 2018 financial statements. The 2017 figures are given for comparison (Click the icon to view the comparative financial information.) Read the requirements Requirement 1. Calculate Comanche's acid-test ratio for 2018. (Round to two decimals.) Determine whether Comanche's acid-test ratio improved or deteriorated from 2017 to 2018. How does Comanche'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 decimal, XXX) Calculate the acid-test ratio for both years. Acid test ratio 2018 2017 Incorr 110) the Data Table 2018 2017 proved or deteriorated fra ng cash equivalents; ST - med Ho fd est Balance sheet-partial Current Assets: Cash Short-term Investments Accounts Receivable 6,000 20,000 12,000 9,000 $ 76,000 $ 63,000 (6.000) 57.000 (5,000) Loss: Allowance for Bad Debts Merchandise Inventory 71,000 189,500 3,500 Prepaid Insurance Total Current Assets Total Current Liabilities Income statement partial Net Sales (all on account) 193,500 3,500 280.000 112,000 285,000 114,000 748.800 736,000 Print (Dono or entel i Data Table 0 Requirements mproved or det ng cash equiva h 1. Calculate Comanche's acid-test ratio for 2018. (Round to two decimals.) Determine whether Comanche's acid-test ratio improved or deteriorated from 2017 to 2018. How does Comanche's acid-test ratio compare with the industry average of 0.80? 2. Calculate Comanche's accounts receivable turnover ratio. (Round to two decimals.) How does Comanche'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 Comanche's credit terms of net 30? Print Done Print Done

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