Calculate the current ratio and the acid-test ratio. Is the company healthy based on the guidelines given in the text?Current assets: $525,000Current liabilities: $182,000Liquid assets: $249,000
A. Current ratio = 2.11 which is fine
Acid-test ratio = 1.37 which is too low
B. Current ratio = 1.37 which is too low
Acid-test ratio = 2.88 which is fine
C. Current ratio = 2.88 which is fine
Acid-test ratio = 2.11 which is fine
D. Current ratio = 2.88 which is fine
Acid-test ratio = 1.37 which is fine
Answer: D
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