Problem 9-16

A firm's balance sheets for the last two years are as follows:

YEAR 20X1 Assets Liabilities and Equity Cash $ 11,000 Accounts payable $ 10,000 Accruals 16,000 Accounts receivable 12,000 Current bank note 7,000 Inventory 17,000 Long-term debt 42,000 Plant and equipment 80,000 Common stock 20,000 Retained earnings 25,000 $ 120,000 $ 120,000 YEAR 20X2 Assets Liabilities and Equity Cash $ 6,000 Accounts payable $ 10,000 Accruals 20,000 Accounts receivable 17,000 Current bank note 8,000 Inventory 17,000 Long-term debt 40,000 Plant and equipment 80,000 Common stock 13,000 Retained earnings 29,000 $ 120,000 $ 120,000 Sales in 20X1 were $340,000. Sales in 20X2 were $340,000.

A. Based solely on the current ratio and the quick ratio, has the firm's liquidity position deteriorated or improved? Round your answers to two decimal places.

1. 20x1: ______????
2. 20x2: ______???
3. Quick ratios: ______???
4. 20x1: ______????
5. 20x2: ____?????
6. The firm's liquidity position has -Select-deteriorated--improved----remained the same ???????
7. Without doing a calculation, has days sales outstanding (receivables turnover) improved____?????
8. Days sale outstanding has -Select-deteriorated---improved-----remained the same???????
9. Without doing a calculation, has inventory turnover deteriorated_____?????
10. Inventory turnover has -Select-deteriorated----improved---remained the same???????
11. If the firm earned $10,000 during 20X2, what proportion of those earnings were distributed? Round your answer to two decimal places._____?????