The comparative financial statements of Suffolk Cosmetic Supply for 2024, 2023, and 2022 include the data shown here:

Data table

	2024	2023	2022
Balance sheetpartial
Current Assets:
Cash	$80,000	$70,000	$65,000
Short-term Investments	120,000	160,000	155,000
Accounts Receivable, Net	265,000	250,000	255,000
Merchandise Inventory	330,000	325,000	315,000
Prepaid Expenses	45,000	30,000	55,000
Total Current Assets	840,000	835,000	845,000
Total Current Liabilities	540,000	615,000	655,000
Income statementpartial
Net Sales (all on account)	5,860,000	5,120,000	4,200,000

1.	Compute these ratios for 2024 and 2023:
	a.	Acid-test ratio (Round to two decimals.)
	b.	Accounts receivable turnover (Round to two decimals.)
	c.	Days' sales in receivables (Round to the nearest whole day.)
2.	Considering each ratio individually, which ratios improved from 2023 to 2024 and which ratios deteriorated? Is the trend favorable or unfavorable for the company?

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Question content area bottom

Requirement 1a. Compute the acid-test ratio for 2024 and 2023. (Round to two decimals.) (Abbreviations used: Cash = Cash including cash equivalents; ST invest. = short-term investments. Round the acid test ratios to two decimals, X.XX.)

	(Cash + ST invest. + Net current receivables)		Total current liabilities	=	Acid-test ratio
2024				=
2023				=