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Harman [31]
3 years ago
9

A corporation reports the following year-end balance sheet data. The company's acid-test ratio equals:

Business
1 answer:
Margaret [11]3 years ago
8 0

Answer: 1.27

Explanation:

The acid test ratio of a company measure how well a company would be able to pay off its current liabilities using its most liquid current assets (current assets less inventory).

= (Cash + Accounts Receivable) / Current liabilities

= (40,000 + 55,000) / 75,000

= 95,000 / 75,000

= 1.27

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