Keswick Industries Has the Following Current Assets and Current Liabilities

Multiple Choice

Keswick Industries has the following current assets and current liabilities on the company's balance sheet: Cash $17,000; Accounts Receivable $8,200; Inventory $54,000; Prepaid Rent $3,000; Accounts Payable $23,000; Long-Term Notes Payable $20,000; and Unearned Revenue $5,500. The company's acid-test ratio would be

A) 1.12:1
B) 0.38:1
C) 0.88:1
D) 1.07:1