Botany Clothiers reported the following amounts in its 2017 financial statements. The 2016 figures are given for comparison.

Requirements
1. Compute Botany's acid-test ratio at the end of 2017. 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 2017 with the company's credit terms of net 30 days?

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2017 2016 2 Current assets: Cash Short-term investments Accounts receivable $ 9,000 12,000 $ 7,000 10,000 4 $ 60,000 $54,000 Less allowance for uncollectibles Inventory (5,000)55,000 (5,000 49,000 172,000 1,000 239,000 6 170,000 1,000 $247,000 aid insurance Total current assets 10 Total current liabilities 11 Net sales 12 $803.000 750,000