K Cherokee C View the co Comparative Financial Information Read the re 2025 2024 Requireme deteriorated Balance sheet-partial Current Assets: Cash Short-term Investments $ 8,000 $ 14,000 ets' acid-test ratio improved or tions used: Cash = Cash 24,500 13,500 including ca Accounts Receivable $ 63,000 $ 76,000 Calculate th Less: Allowance for Bad Debts (5,000) 58,000 (4,000) 72,000 Merchandise Inventory 195,000 191,000 2025 2024 Prepaid Insurance 5,000 5,000 The acid-tes Total Current Assets Total Current Liabilities 290,500 295,500 111,000 113,000 80. Income statement-partial Requireme the industry cash equiva Net Sales (all on account) 3330 Print Done 754,000 737,000 erokee Carpets' ratio compare to Cash including Next I Cherokee Carpets reported the following amounts in its 2025 financial statements. The 2024 figures are given for comparison. View the comparative financial information Read the requirements. Requirement 1. Calculate Cherokee Carpets' acid-test ratio for 2025. (Round to two decimals.) Determine whether Cherokee Carpets' acid-test ratio improved or deteriorated from 2024 to 2025. How does Cherokee Carpets' acid-test ratio compare with the industry average of 0.80? (Abbreviations used: Cash Cash including cash equivalents; ST invest. = short-term investments. Round the acid test ratio to two decimals, X.XX.) Calculate the acid-test ratio for both years. 2025 2024 Acid-test ratio The acid-test ratio from 2024 to 2025. The company's acid-test ratio is the industry average of 0.80. K Cherokee Carpets reported the following amounts in its 2025 financial statements. The 2024 figures are given for comparison. View the comparative financial information. Read the requirements. Requirement 2. Calculate Cherokee Carpets' accounts receivable turnover ratio for 2025. (Round to two decimals.) How does Cherokee Carpets' ratio compare to the industry average accounts receivable turnover of 10? (Abbreviations used: AR turn accounts receivable turnover ratio; Cash Cash including cash equivalents; ST invest. short-term investments. Round the accounts receivable turnover ratios to two decimals, X.XX.) 2025 AR turn The company's accounts receivable tumover ratio is the industry average of 10. Requirement 3. Calculate the days' sales in receivables for 2025. (Round to the nearest day.) How do the results compare with Cherokee Carpets' credit terms of net 30? (Abbreviations used: Cash Cash including cash equivalents; ST invest. short-term investments. Round interim calculations to two decimals, X.XX, and the days in receivables to the nearest whole day.) = 2025 Days' sales in AR Cherokee Carpets' days' sales in receivables calculation is the company's net 30-day credit period.