Current Assets for Distributions Inc

question 162

Multiple Choice

Current assets for Distributions Inc.are $260,000 and total assets are $600,000.Current liabilities are $170,000 and total liabilities are $300,000.Included in the current assets are merchandise inventory and prepaid expenses of $25,000 and $15,000,respectively.What is the acid-test ratio?

• A) 1.15
• B) 0.87
• C) 1.53
• D) 1.29

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