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PPC Ltd. signed a five-year term loan in 2020 in which PPC was required to maintain a current ratio of 2.5 times for a loan covenant. PPC provides normal credit terms of net 30 on all its sales. The following amounts were reported in the company's year- end financial statements for 2020 and 2019: 2020 2019 Cash $138,100 $280,900 Accounts receivable 178,700 90,500 Short-term investments 10,000 1,800 Inventory 425,500 402,200 Prepaid rent 75,100 75,100 Accounts payable 178,900 193,700 Wages payable 33,400 Income tax payable 50,300 59.500 Sales tax payable 14,800 14,800 Notes payable within 1 yr.) 11.900 23,800 Bank loan payable 59,700 0 Sales revenue 1,883.900 1462.300 54.500 Additional information The bank loan payable is repayable in annual principal payments of $11.940 X Your anwwer is incorrect Calculate the current ratio for 2019 and 2020. (Round answers to 2 decimal places eg. 15.25.) 2020 2019 Current ratio 3.16 e Textbook and Media X Your answer is incorrect. Calculate the quick ratio for 2019 and 2020. (Round answers to 2 decimal places, eg 15.25.) 2020 2019 Quick ratio 1.63 1.39 eTextbook and Media Assistance Used X Your answer is incorrect Calculate the accounts receivable turnover ratio for 2019 and 2020 (just use the current year's Accounts Receivable balance). (Round answers to I decimal place, eg. 15.2) 2020 2019 Accounts receivable turnover ratio 14 times 12 times eTextbook and Media Your answer is correct. Is PPC compliant with the current ratio covenant? Yes e Textbook and Media - Your answer is partially correct. How does PPC's average collection period compare to its normal credit terms? (Round answers to 1 decimal place, eg. 15.2. Use 365 days for calculation) 2020 2019 Average collection period 25.7 days 30.4 days The average collection period is greater than PPC's normal credit terms e Textbook and Media Assistance Used

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