Requirement 1. Compute

PilgrimPilgrim's

quick (acid-test) ratio at the end of

20192019.

Round to two decimal places. How does the quick ratio compare with the industry average of 0.92?

Begin by selecting the formula, then enter the amounts and compute the quick (acid-test) ratio. (Abbreviation used: Cash* = Cash and cash equivalents. Round the quick (acid-test) ratio to two decimal places.)

Cash* + Short-term investments + Net current receivables

/

Total current liabilities

=

Quick (acid-test) ratio

104000

/

104000

=

How does the quick (acid-test) ratio compare to the industry average of 0.92?

PilgrimPilgrim's

position is

favorable

compared to the industry average of 0.92.

Requirement 2. Compare days' sales outstanding for

20192019

with the company's credit terms of net 30 days.

Begin by selecting the formula, then enter the amounts to calculate the days' sales outstanding. (Round interim calculations to two decimal places, XX.XX and the days' sales outstanding (DSO) up to the next whole day.)

/

=

Days' sales outstanding

/

=

days

PilgrimPilgrim's

days' sales outstanding is

blank

the credit terms of net 30

Data table:

	2019		2018
Current assets:
Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . .		$10,000		$10,000
Short-term investments. . . . . . . . . . . . . . . . . . . . . . . . . . . . .		18,100		14,600
Accounts receivable. . . . . . . . . . . . . . . . . . . . . . . . . . . . .	$83,500		$70,200
Less: Allowance for uncollectibles. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	(7,600)	75,900	(5,600)	64,600
Inventory. . . . . . . . . . . . . . . . . . . . . . . . . . . . .		192,000		194,000
Prepaid insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .		2,300		2,300
Total current assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .		298,300		285,500
Total current liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .		104,000		110,000
Net sales (all on account). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .		843,000		735,000