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yawa3891 [41]
3 years ago
9

Use the following to calculate the acid-test ratio. (Round your answer to two decimal places.) Cash: $100,000 Short-term investm

ents: 17,000 Net current receivables: 250,000 Inventory: 330,000 Total current liabilities: 760,000 O 0.92 5.88 O 0.79 0.48
Computers and Technology
1 answer:
uysha [10]3 years ago
5 0

Answer: 0.48

Explanation:

The acid test ratio will be calculated as:

Cash = $100,000

Add: Short term investments = $17,000

Add: Net Current Receivables = $250,000

Total Assets = $367,000

/ Total Current Liabilities = $760,000

Acid Test Ratio will now be:

= Total Assets / Total Liabilities

= $367000/$760000.

= 0.48

Therefore, the acid test ratio is 0.48.

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