PPC Ltd. signed a five-year term loan in 2020 in which PPC was required to maintain a current ratio of 2.5 times for a loan covenant. PPC provides normal credit terms of net 30 on all its sales. The following amounts were reported in the companys year-end financial statements for 2020 and 2019:

		2020		2019
Cash		$190,200		$279,300
Accounts receivable		180,500		90,800
Short-term investments		9,900		2,200
Inventory		425,600		400,900
Prepaid rent		75,800		75,800
Accounts payable		181,200		193,400
Wages payable		32,900		55,600
Income tax payable		50,200		60,400
Sales tax payable		15,000		15,000
Notes payable (within 1 yr.)		12,000		24,000
Bank loan payable		60,400		0
Sales revenue		1,884,600		1,652,600

Additional information: The bank loan payable is repayable in annual principal payments of $12,080.

1)

Calculate the current ratio for 2019 and 2020. (Round answers to 2 decimal places, e.g. 15.25.)

		2020		2019
Current ratio

Calculate the quick ratio for 2019 and 2020. (Round answers to 2 decimal places, e.g. 15.25.)

		2020		2019
Quick ratio

Calculate the accounts receivable turnover ratio for 2019 and 2020 (just use the current years Accounts Receivable balance). (Round answers to 1 decimal place, e.g. 15.2.)

		2020		2019
Accounts receivable turnover ratio		times

How does PPCs average collection period compare to its normal credit terms? (Round answers to 1 decimal place, e.g. 15.2. Use 365 days for calculation.)

		2020		2019
Average collection period		days		days

The average collection period is ______

PPCs normal credit terms ____________