Compute the acid-test ratio for 2018. (Round your answer to two decimal places)
The financial statements for Silver Service Company include the following items:
A) 0.92
B) 0.81
C) 0.93
D) 0.66
B) 0.81
B) 0.81Acid-test ratio = (Cash + Short-term investments + Net current receivables) / Total current
liabilities
Acid-test ratio = (Cash $40,000 + Short-term investments $20,500 + Net current receivables $53,000) /
(Accounts payable $122,000 + Salaries Payable $18,000)
Acid-test ratio = $113,500 / $140,000
Acid-test ratio = 0.81
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