Answer:
0.73 times
Explanation:
The computation of the acid test ratio for 2018 is shown below:
Acid-test ratio = Quick assets ÷ total current liabilities
where,
Quick assets = Cash + short-term investments + Accounts receivable (net)
= $42,000 + $14,500 + $48,000
= $104,500
And, the current liabilities would be
= Accounts Payable + Salaries payable
= $127,000 + $16,000
= $143,000
Now put these values to the above formula
So, the value would equal to
= $104,500 ÷ $143,000
= 0.73 times