S5-12 (similar to) Western Products reported the following amounts in its 2019 financial statements. The 2018 amounts are given for comparison. (Click the icon to view the financial data.) Read the requirements. Requirement 1. Compute Western's quick (acid-test) ratio at the end of 2019. 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 1 Total current liabilities = Quick (acid-test) ratio 94,500 / 105,000 0.90 How does the quick (acid-test) ratio compare to the industry average of 0.92? Western's position is unfavorable compared to the industry average of 0.92. Requirement 2. Compare days' sales outstanding for 2019 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. 365 days / Accounts receivable turnover = Days' sales outstanding 365 = days X i Data Table 2019 2018 Current assets: Cash $ 9,000 $ 9,000 Short-term investments 12,500 7,500 Accounts receivable $ 82,000 (9,000) $ 71,800 73,000 (7,000) Less: Allowance for uncollectibles 64,800 Inventory 191,000 2,000 193,000 2,000 Prepaid insurance Total current assets 287,500 276,300 Total current liabilities 109,000 105,000 757,900 Net sales (all on account). 732,000