A Corporation Reports the Following Year-End Balance Sheet Data A) 058
B) 1

question 173

Multiple Choice

A corporation reports the following year-end balance sheet data. The company's acid-test ratio equals: $$\begin{array} { l r l r } \text { Cash } & \$ 40,000 & \text { Current liabilities } & \$ 75,000 \\\text { Accounts receivable } & 55,000 & \text { Lore-tern liabilities } & 35,000 \\\text { Irventory } & 60,000 & \text { Corrnon stock } & 100,000 \\\text {Equipment} & \underline{145,000 }& \text { Retained earnings } & \underline{90,000} \\\text {Total assets}&\underline{ \$ 300,000 }& \text { Total liabilities ard equity } & \underline{\$ 300,000}\end{array}$$

• A) 0.58
• B) 1.27
• C) 2.07
• D) 0.37
• E) 0.63

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