Botany Clothiers reported the following amounts in its 20X6 financial statements. The 20X5 figures are given for comparison.

Required
1. Compute Botany's acid-test ratio at the end of 20X6. Round to 2 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 20X6 with the company's credit terms of net 30 days.

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20X6 20X5 Current assets: $ 9,000 15,000 $ 9,000 11,000 Cas Accounts receivable $80,000 $74,000 Less allowance for 73,000 uncollectibles188,000 68,000 189,000 2,000 279,000 107,000 732,000 (7,000) (6,000) Inventory Prepaid insurance Total current assets 2,000 287,000 101,000 803,000 Net s