Gardner Clothiers reported the following selected items at August $31,2016($last year's$-2015-$amounts also given as needed$)$:

$($Click the icon to view the financial data.$)$

Compute Gardner$($ia$)$ acid$-$test ratio, $($b$)$ accounts receivable turnover ratio, and $($c$)$ days' sales in receivables for $2016$Evaluate each ratio value as strong or weak. Gardnersells on terms of net $30.($Round days' sales in receivables to a whole number.$)$

$($a$)$ Compute Gardner's acid$-$test ratio. $($Round your final answer to two decimal places. Abbreviation used: Avg. $=$ Average; Invest. $=$ Investment; Liab. $=$ Liabilities; Merch. $=$ Merchandise; Receiv. $=$ Receivable; Rev. $=$ Revenue.$)$

$+[,+,)\text{'},=$ Acid$-$test ratio

$+,+,$

mpute Gar

vable; Rev.

Data table

Accounts Payable

Cash

Merchandise Inventory:

August $31,2016$

August $31,2015$

Net Credit Sales Revenue

Long$-$term Assets

Long$-$term Liabilities

$ $324,000$ Accounts Receivable, net:

$437,040$

August $31,2016$

August $31,2015$

$250,000$ Cost of Goods Sold

$200,000$ Short$-$term Investments

$3,285,000$ Other Current Assets

$390,000$ Other Current Liabilities

$130,000$

Gardner Clothiers reported the following selected items at August $31,2016($last year's$-2015-$amounts also given as needed$)$:

$($Click the icon to view the financial data.$)$

Compute Gardner's $($a$)$ acid$-$test ratio, $($b$)$ accounts receivable turnover ratio, and $($c$)$ days' sales in receivables for $2016.$ Evaluate each ratio value as strong or weak. Gardner sells on terms of ne $30.($Round days' sales in receivables to a whole number.$)$

Points: $0$ of $3$

Sava

orted the following selected items at August $31,2016($last year's$-2015-$amounts also given as needed$)$: view the financial data.$)$

a$)$ acid$-$test ratio, $($b$)$ accounts receivable turnover ratio, and $($c$)$ days' sales in receivables for $2016.$ Evaluate ea s in receivables to a whole number.$)$

Data table

$\backslash$table$[[$Accounts Payable,$$,324,000$ Accounts Receivable, net:,$],[$Cash$,437,040,$ August $31,2016,120,000,],[$Merchandise Inventory:,, August $31,2015,60,000,],[$August $31,2016,250,000$ Cost of Goods Sold,$1,250,000,],[,$ August $31,2015,200,000$ Short$-$term Investments,$144,000,],[$Net Credit Sales Revenue,$3,285,000$ Other Current Assets,$70,000,],[$Long$-$term Assets,$390,000$ Other Current Liabilities,$184,000,],[$Long$-$term Liabilities,$130,000,,]]$