Using the following year-end information for Calvin's Clothing, calculate the current ratio and acid-test ratio for the business: Cash$52,000Short-term investments 12,000Accounts receivable 54,000Inventory 325,000Prepaid expenses 17,500Accounts payable 106,500Other current payables 25,000
A. 3.50 and 0.90
B. 2.73 and 1.52
C. 1.80 and 0.90
D. 1.80 and 1
E. 1.97 and 1.52
Answer: A
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