E5-23A. (Learning Objectives 1, 7: Show how to speed up cash flow from receivables; evaluate liquidity through ratios) Moore Corporation reported the following items at December 31, 2018, and 2017: A1 1 Balance Sheets (Summarized) 2 3 Year-end Year-end 4 2018 2017 2018 2017 5 Current assets: Current liabilities: 6 Cash $ 18,000 $ 14,000 Accounts payable $ 19,000 $ 20,500 7 Marketable securities 20,000 9,000 Other current liabilities 108,000 110,000 8 Accounts receivable, net 53,000 67,000 Long-term liabilities 20,000 21,000 9 Inventory 190,000 186,000 10 Other current assets 3,000 3,000 Stockholders' equity 137,000 137,500 11 Long-term assets 10,000 12 Total assets $ 284,000 $ 289,000 Total liabilities and equity $ 284,000 $ 289,000 13 14 Income statement (partial): 2018 15 Sales Revenue $ 900,000 17 Requirements 1. Compute the company's (a) quick (acid-test) ratio and (b) days' sales outstanding for 2018. Evaluate each ratio value as strong or weak. All sales are on account with terms of net 30 days. 2. Recommend two ways for Moore to speed up its cash flow from receivables