Algonquin Carpets reported the following amounts in its 2014 financial statements. The 2013 figures are given for comparison.

Requirements
1. Calculate Algonquin’s acid-test ratio for 2014. (Round to two decimals.) Determine whether Algonquin’s acid-test ratio improved or deteriorated from 2013 to 2014. How does Algonquin’s acid-test ratio compare with the industry average of 0.80?
2. Calculate Algonquin’s accounts receivable turnover ratio. (Round to two decimals.) How does Algonquin’s ratio compare to the industry average accounts receivable turnover of 10?
3. Calculate the days’ sales in receivables for 2014. (Round to the nearest day.) How do the results compare with Algonquin’s credit terms of net30?

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2014 2013 Current Assets: Cash Short-term Investments Accounts Receivable Less: Allowance for Bad Debts Merchandise Inventory Prepaid Insurance Total Current Assets 5 4,000 $ 10,000 20,000 9,000 63,000 (6,000) 76,000 57,000 (5,000) 195,000 4,000 $ 280,000 104,000 732,000 71,000 191,000 4,000 $ 285,000 106,000 $735,000 Total Current Liabilities Net Sales (all on account)