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

Requirements
1. Compute Botany's acid-test ratio at the end of 2014. Round to two decimal places. How does the acid-test ratio compare with the industry average of 0.95?
2. Compare Botany's days' sales in receivables measure for 2014 with the company's credit terms of net 30 days.

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2014 2013 Current assets: Cash Short-term investments Accounts receivable $ 9,000 12,000 S 7,000 10,000 $60,000 $54,000 Less allowance for uncollectibles Inventory Prepaid insurance Total current assets 5,000) 55,000 (5,000) 49,000 172,000 1,000 $239,000 $ 70,000 750,000 170,000 1,000 $247,000 $ 80,000 $803,000 Total current liabilities Net sales