Limerick Ltd., a gift store, reported the following amounts in its 2023 financial statements. The 2022 figures are given for comparison. (Click the icon to vlew the comparative financial information.) Calculate Limerick's acid-test ratios for 2023 and 2022 . (Round the ratios to two decimal places.) The acid-test ratio in 2023. The company's acid-test ratio is the industry average of 0.90 . Requirement 2. Compare the days' sales in receivables measure for 2023 with the company's credit terms of net 30 . What action, if any, should Limerick Ltd. take? Calculate Limerick's days' sales in receivables for 2023 . (Round your answer to the nearest whole number at each step of the calculation.) Days' sales in receivables for 2023= Limerick's days' sales in receivables calculation the company's net 30-day credit period. Limerick's days' sales in receivables is Required 1. Determine whether Limerick Ltd.'s acid-test ratio improved or deteriorated from 2022 to 2023. How does Limerick Ltd.'s acid-test ratio compare with the industry average of 0.90 ? 2. Compare the days' sales in receivables measure for 2023 with the company's credit terms of net 30 . What action, if any, should Limerick 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. Limerick Ltd., a gift store, reported the following amounts in its 2023 financial statements. The 2022 figures are given for comparison. (Click the icon to vlew the comparative financial information.) Calculate Limerick's acid-test ratios for 2023 and 2022 . (Round the ratios to two decimal places.) The acid-test ratio in 2023. The company's acid-test ratio is the industry average of 0.90 . Requirement 2. Compare the days' sales in receivables measure for 2023 with the company's credit terms of net 30 . What action, if any, should Limerick Ltd. take? Calculate Limerick's days' sales in receivables for 2023 . (Round your answer to the nearest whole number at each step of the calculation.) Days' sales in receivables for 2023= Limerick's days' sales in receivables calculation the company's net 30-day credit period. Limerick's days' sales in receivables is Required 1. Determine whether Limerick Ltd.'s acid-test ratio improved or deteriorated from 2022 to 2023. How does Limerick Ltd.'s acid-test ratio compare with the industry average of 0.90 ? 2. Compare the days' sales in receivables measure for 2023 with the company's credit terms of net 30 . What action, if any, should Limerick 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
