A Corporation Reports the Following Year-End Balance Sheet Data A) 207
B) 0

Multiple Choice

A corporation reports the following year-end balance sheet data. The company's acid-test ratio equals: $\begin{array} { l c c c } \text { Cash } & \$ 40,000 & \text { Current liabilities } & \$ 75,000 \\\text { Accounts receivable } & 55,000 & \text { Long-term liabilities } & 35,000 \\\text { Inventory } & 60,000 & \text { Common stock } & 100,000 \\& & & \\\text { Equipment } & 145,000 & \text { Retained earnings } & 90,000 \\\text { Total assets } & \$ 300,000 & \text { Total liabilities and equity } & \$ 300,000\end{array}$

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