E9-14 Vision Electronics, which makes DVD players, reported the following items at February 28, 2020 (amounts in thousands, with last year's-2019-amounts also given as needed): Accounts Payable. $1,796 Accounts Receivable, net Cash Inventories 860 February 29, 2020 February 28, 2019 $ 440 300 D February 29, 2020 380 Cost of Goods Sold.. 4,800 February 28, 2019 320 Short-term Investments 330 Net Sales Revenue 7,720 Other Current Assets 180 Long-term Assets. 820 Other Current Liabilities 290 Long-term Liabilities: 20 Compute for 2020 Vision Electronics' (a) acid-test ratio, (b) days' sales in average receivables, (c) current ratio, (d) debt ratio, (e) gross margin percent, (f) inventory turnover. Evaluate each ratio value as strong or weak. Assume Vision Electronics sells on terms of net 30. Assignment Material E9-15 Franklin Ltd., a gift store, reported the following amounts in its 2020 financial statements. The 2019 figures are given for comparison. 2020 2019 Current assets Cash $ 12,000 Short-term investments 46,000 $ 26,000 22,000 Accounts receivable $120,000 $148,000 Less: Allow. for doubtful accts 20,000 100,000 18,000 130,000 Inventory 384,000 378,000 Prepaid insurance 4,000 4,000 Total current assets $ 546,000 $560,000 Total current liabilities Net sales $ 218,000 $ 224,000 $1,460,000 $1,464,000 Required 1. Determine whether Franklin Ltd.'s acid-test ratio improved or deteriorated from 2019 to 2020. How does Franklin 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 Franklin Ltd. take