Refer to the Following Selected Financial Information from WorkFit Corporation

question 4

Multiple Choice

Refer to the following selected financial information from WorkFit Corporation. Compute the company's acid-test ratio. $\begin{array}{lr}\text { Cash } & \$ 2,250 \\\text { Short-term investments } & 60,000 \\\text { Accounts receivable, net } & 79,500 \\\text { Merchandise inventory } & 115,000 \\\text { Prepaid expenses } & 9,700 \\\text { Accounts payable } & 111,400\end{array}$

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

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