West Highland Clothiers reported the following amounts in its 2011 financial statements. The 2010 amounts are given for comparison.

Requirements
1. Compute West Highlands acid-test ratio at the end of 2011. Round to two decimal places. How does the acid-test ratio compare with the industry average of 0.97?
2. Compare day’s sales in receivables measure for 2011 with the company’s credit terms of net 30days.

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2011 2010 Current assets: $ 9,700 17,000 $ 9,700 14,000 Short-term investments.. Accounts receivable... $84,000 $77,000 Less: Allowance for uncollectibles. (7,100) 76,900 189,000 (6,100) 70,900 190,500 2,300 287,400 111,000 736,000 Inventory Prepaid insurance Total current assets Total current liabilities Net sales... 294,900 99,000 802,000