Question: Evaluating ratio data Apache Carpets reported the following amounts in its 2016 financial statements. The 2015 figures are given for comparison.
Requirements: 1. Calculate Apache's acid-test ratio for 2016. (Round to two decimals.) Determine whether Apache's acid-test ratio improved or deteriorated from 2015 to 2016. How does Apache's acid-test ratio compare with the industry average of 0.80?
2. Calculate Apache's accounts receivable turnover ratio. (Round to two decimals.) How does Apache's ratio compare to the industry average accounts receivable turnover of 10?
3. Calculate the days' sales in receivables for 2016. (Round to the nearest day.) How do the results compare with Apache's credit terms of net 30?