Information from Collins Company's Balance Sheet Is as Follows $\text { Current assets: }$

Multiple Choice

Information from Collins Company's balance sheet is as follows: $\text { Current assets: }$
$\begin{array}{lr}\text { Cash } & 12,000,000 \\\text { Short-term investments } & 20,000,000 \\\text { Accounts receivable } & 50,000,000 \\\text { Inventories } & 66,000,000 \\\text { Prepaid expenses } & 2,000,000 \\\text { Total current assets } & \$ 150,000,000\end{array}$ $\begin{array}{lr}\text { Current liabilities: }\\\text { Notes payable } & 21,000,000 \\\text { Accounts payable } & 18,000,000 \\\text { Accrued expenses } & 13,000,000 \\\text { Income taxes payable } & 3,000,000 \\\text { Current portion of long-term debt } & 5,000,000 \\\hline\text { Total current liabilities }&\$60,000,000\end{array}$ What is the acid-test (quick) ratio?

A) 1.03 to 1
B) 1.37 to 1
C) 1.40 to 1
D) 2.50 to 1