Presented Below Is Information Related to Tolbert Company Total Current Liabilities Are $100,000

Multiple Choice

Presented below is information related to Tolbert Company. $\begin{array}{lr}\text { Current Assets }\\\text { Cash } & \$ 4,000 \\\text { Short-term investments } & 75,000 \\\text { Accounts receivable } & 61,000 \\\text { Inventories } & 110,000 \\\text { Prepaid expenses } & 30,000\\\text { Total current assets }&\$280,000\end{array}$ Total current liabilities are $100,000. What is the acid-test ratio?

A) 2.8 to 1.
B) 2.5 to 1.
C) 1.4 to 1.
D) 0.8 to 1.