Answer Happy

Leeds Carpets reported the following amounts in its 20X8 financial statements. The 20X7 figures are given for comparison. i (Click the icon to view the comparative financial information.) Required 1. Determine whether Leeds's acid-test ratio improved or deteriorated from 20X7 to 20X8. How does Leeds's acid-test ratio at the end of 20X8 compare with the industry average of 0.80? 2. Compare the receivables' settlement period for 20X8 with Leeds's usual credit terms of 30 days. C Requirement 1 Calculate Leeds's acid-test ratios for 20X8 and 20X7. (Round the ratios to two decimal places. Enter a zero before decimals that are less than one.) 20X8 20X7 :1 Acid-test ratios :1 The acid-test ratio between 20X7 and 20X8. The company's 20X8 acid-test ratio is the industry average of 0.80. Requirement 2 Calculate Leeds's receivables settlement period, in days, for 20X8. (Round your answer to the nearest whole number.) 20X8 Receivables settlement period = days Leeds's receivables settlement period the company's net 30-day credit period.