Lisa Inc.'s Balance Sheet Appears Below

Multiple Choice

Lisa Inc.'s balance sheet appears below:
The company's sales for the year were $300,000, its cost of goods sold was $220,000, and its net income was $35,000. All sales were on credit. Dividends paid on preferred shares for the year were $5,000.



-Lisa Inc.'s acid-test (quick) ratio at December 31,Year 2,was closest to which of the following?

A) 0.6 to 1.
B) 1.1 to 1.
C) 1.8 to 1.
D) 2.0 to 1.