Using the Following Year-End Information for Bauman, LLC, Calculate the Current

Multiple Choice

Using the following year-end information for Bauman, LLC, calculate the current ratio and acid-test ratio: $$\begin{array} { l r } \text { Cash } & \$ 48,000 \\\text { Short-term investments } & 12,000 \\\text { Accounts receivable } & 45,000 \\\text { Inventory } & 225,000 \\\text { Prepaid expenses } & 12,500 \\\text { Accounts payable } & 86,500 \\\text { Other eurrent payables } & 22,000\end{array}$$

A) 3.01 and 1.21
B) 3.16 and 1.21
C) 3.04 and 1.21
D) 3.16 and .97
E) 1.09 and 4.77