Eradicate Company Has $16,000 in Cash, $8,000 in Marketable Securities

Multiple Choice

Eradicate Company has $16,000 in cash, $8,000 in marketable securities, $29,000 in account receivable, $30,000 in inventories, and $34,000 in current liabilities. The company's current assets consist of cash, marketable securities, accounts receivable, and inventory. The company's acid-test ratio is closest to:

A) 0.85
B) 2.44
C) 1.56
D) 1.32