Requirement $1$a$.$ Compute the

a$$cid$-$test

ratio for

$20242024$

and

$20232023.$

$($Round to two$$ decimals.$)($Abbreviations used: Cash$=$ Cash including cash$$ equivalents; ST invest.$=$ short$-$term investments. Round the acid test ratios to two$$ decimals, X$.$XX$.)$

$$

$($Cash $+$ ST invest. $+$ Net current receivables$)$

$$

Total current assets

$=$

Acid$-$test ratio

$2024$

$490000$

$$

$550000$

$=$

$\mathrm{.}89$

$2023$

$470000$

$$

$610000$

$=$

Part $2$

Requirement $1$b$.$ Compute the

accounts

receivable turnover for

$20242024$

and

$20232023.$

$($Round to two$$ decimals.$)($Abbreviations used: AR turn$=$ accounts receivable turnover$$ ratio; Cash$=$ Cash including cash$$ equivalents; ST invest.$=$ short$-$term investments. Round the accounts receivable turnover ratios to two$$ decimals, X$.$XX$.)$

$$

Net credit sales

$$

Average net accounts receivable

$=$

AR turn

$2024$

$5850000$

$$

$277500$

$=$

$21\mathrm{.}08$

$2023$

$5140000$

$$

$2525000$

$=$

Part $3$

Requirement $1$c$.$ Compute the

d$$ays$\text{'}$

sales in receivables for

$20242024$

and

$20232023.$

$($Round to the nearest whole$$ day.$)($Abbreviations used: Cash$=$ Cash including cash$$ equivalents; ST invest.$=$ short$-$term investments. Round interim calculations to two$$ decimals, X$.$XX$,$ and the days in receivables to the nearest whole$$ day.$)$

$$

$365$

$$

$=$

Days' sales in AR

$2024$

$$

$$

$$

$=$

$$

$2023$

$$

$$

$$

$=$

$$

Part $4$

Requirement $2.$ Considering each ratio$$ individually, which ratios improved from

$20232023$

to

$20242024$

and which ratios$$ deteriorated? Is the trend favorable or unfavorable for the$$ company?

The$$ acid$-$test ratio

$$

$$

stayed the same

improved

deteriorated

from

$20232023$

to

$20242024.$

This trend

$$

$$

is unfavorable for

is favorable for

does not impact

the company.

Part $5$

The accounts receivable turnover

$$

$$

improved

stayed the same

deteriorated

from

$20232023$

to

$20242024.$

This trend

$$

$$

is unfavorable for

does not impact

is favorable for

the company.

Part $6$

The$$ days' sales in receivables

$$

$$

stayed the same

improved

deteriorated

from

$20232023$

to

$20242024.$

This trend

$$

$$

does not impact

is favorable for

is unfavorable for

the company.