Cherokee Carpets reported the following amounts in its 2009 financial statements. The 2008 figures are given for
Question:
Cherokee Carpets reported the following amounts in its 2009 financial statements. The 2008 figures are given for comparison.
Requirements
1. Determine whether Cherokee's acid-test ratio improved or deteriorated from 2008 to 2009. How does Cherokee's acid-test ratio compare with the industry average of 0.80 ?
2. Compare the days' sales in receivables for 2009 with Cherokee's credit terms of net 30.
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