Chapter 8 Question 6

Answer all the requirements please.

Chippewa Carpets reported the following amounts in its 2024 financial statements. The 2023 figures are given for comparison. (Click the icon to view the comparative financial information.) Read the requirements. two decimals, X.XX.) Calculate the acid-test ratio for both years. Data table Requirements 1. Calculate Chippewa's acid-test ratio for 2024. (Round to two decimals.) Determine whether Chippewa's acid-test ratio improved or deteriorated from 2023 to 2024 . How does Chippewa's acid-test ratio compare with the industry average of 0.80 ? 2. Calculate Chippewa's accounts receivable turnover ratio. (Round to two decimals.) How does Chippewa's ratio compare to the industry average accounts receivable turnover of 10 ? 3. Calculate the days' sales in receivables for 2024 . (Round to the nearest day.) How do the results compare with Chippewa's credit terms of net 30