Refer to the Following Selected Financial Information from Dodge Company

question 98

Multiple Choice

Refer to the following selected financial information from Dodge Company. Compute the company's acid-test ratio. $$\begin{array} { | l | r | } \hline & \\\hline \text { Cash } & \$ 42,250 \\\hline \text { Short-term investments } & 60,000 \\\hline \text { Accounts receivable, net } & 79,500 \\\hline \text { Merchandise inventory } & 115,000 \\\hline \text { Prepaid expenses } & 9,700 \\\hline \text { Accounts payable } & 111,400 \\\hline\end{array}$$

• A) 1.12.
• B) 0.92.
• C) 2.75.
• D) 1.63.
• E) 2.66.

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