Burke's Office Supply has cash assets of $82,000 and accounts receivable of $94,000. Their accounts payable total $55,000. What is the acid test ratio?
3.2:1;
($82,000 + $94,000 ) ÷ $55,000 = $176,000 ÷ $55,000 = 3.2
The acid test ratio is 3.2:1.
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