Use the Following to Calculate the Acid-Test Ratio A) 074
B) 6

Multiple Choice

Use the following to calculate the acid-test ratio.(Round your answer to two decimal places.) $$\begin{array} { | l | l | } \hline \text { Cash } & \$ 100,000 \\\hline \text { Short-term investments } & 15,000 \\\hline \text { Net current receivables } & 250,000 \\\hline \text { Inventory } & 310,000 \\\hline \text { Total current liabilities } & 780,000 \\\hline\end{array}$$

A) 0.74
B) 6.67
C) 0.87
D) 0.47