Limerick Ltd, a gift store, reported the following amounts in its 2020 financial statements. The 2019 figuros age given for comparison (Click the icon to view the comparative financial Information.) Required 1. Determine whether Limerick Ltd's acid-test ratio improved or deteriorated from 2019 to 2020 How does Limerick Lad'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 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 2020 2019 Current assets: Cash $ 30,000 S 44.000 29.000 Short-term investments Accounts receivable $ 138,000 38.000 53,000 $ 166,000 100.000 36,000 Less: Allow, for doubtful accts Inventory Prepaid insurance 898.000 8.500 130.000 392,000 8,500 S 589.500 $ 603.500 Total current assets Total current liabilities 5 228.000 S 1996.000 S 234.000 $ 2.000.000 Net sales Pont Done