Excerpts from Colter Corporation's most recent balance sheet appear below: Year 2Year 1Current assets:      Cash$90 $120 Accounts receivable, net 100  110 Inventory 170  160 Prepaid expenses 40  40 Total current assets 400  430 Total current liabilities$320 $290 Sales on account in Year 2 amounted to $1,210 and the cost of goods sold was $720.The acid-test (quick) ratio at the end of Year 2 is closest to:

A. 0.83
B. 1.25
C. 0.72
D. 0.59


Answer: D

Business

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