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

Multiple Choice

A corporation reports the following year-end balance sheet data.The company's acid-test ratio equals: $$\begin{array} { l r l r r } \text { Cash } & \$ 40,000 & \text { Current liabilities } & \$ 5,000 \\\text { Accourts receivable } & 55,000 & \text { Long-temn liabilities } & 35,000 \\\text { Irventory } & 60,000 & \text { Cormon stock } & 100,000 \\\text { Equiprment } & \underline{145,000} & \text { Retaired earnirgs } & \underline{90,000} \\\text { Total assets } & \underline{\$ 300,000} & \text { Total liabilities ard equity } & \underline{\$ 300,000}\end{array}$$

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