Liquidity Position. Based upon the answer to Problem 2.4, does Charles Corporation have good or poor liquidity if industry average for current ratio is 1.29 and quick ratio is 1.07? 20X2...

Liquidity Position. Based upon the answer to Problem 2.4, does Charles Corporation have good or poor liquidity if industry average for current ratio is 1.29 and quick ratio is 1.07?

20X2                      20X1

Average accounts receivable                      $ 400,000            $ 416,000

Net credit sales                                                                 $2,600,000           $3,100,000

The terms of sale are net 30 days. (a) Compute the accounts receivable turnover and the collection period, and (b) evaluate the results.