What is the 2019 acid-test ratio? (Round your answer to two decimal places.)
The financial statements of Island Furniture Company include the following items:
A) 0.24
B) 1.12
C) 1.74
D) 0.57
D) 0.57
Acid-test ratio = (Cash + Short-term investments + Net current receivables) / Total current
liabilities
Acid-test ratio = (Cash $45,500 + Short-term investments $26,000 + Net current receivables $102,000) /
$302,000
Acid-test ratio = $173,500 / $302,000
Acid-test ratio = 0.57
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