Using the following year-end information for Calvin's Clothing, calculate the current ratio and acid-test ratio for the business: Cash$60,840?Short-term investments 16,500?Accounts receivable 63,000?Inventory 320,000?Prepaid expenses 12,220?Accounts payable 110,500?Other current payables 32,700?
A. 2.30 and 0.98
B. 3.30 and 0.98
C. 3.37 and 1.02
D. 0.30 and 1.02
E. 2.30 and 1.00
Answer: B
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