Using the following year-end information for Calvin's Clothing, calculate the current ratio and acid-test ratio for the business: Cash$ 52,800Short-term investments9500?Accounts receivable49,000?Inventory180,000?Prepaid expenses10,430?Accounts payable103,500?Other current payables30,600?
A. 1.25 and 1
B. 1.25 and 0.83
C. 0.44 and 1.20
D. 2.71 and 1.20
E. 2.25 and 0.83
Answer: E
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