What is the acid-test ratio for a merchant with the following account balances?
(Round your answer to two decimal places.)
Cash $22,000
Short-term investments 41,000
Net current receivables 50,000
Merchandise inventory 93,000
Total current liabilities 275,000
A) 0.75
B) 0.41
C) 0.60
D) 0.81
B .Acid-test ratio = ($22,000 + $41,000 + $50,000 ) / $275,000 = 0.41
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