Calculate the current ratio and the acid-test ratio. Is the company healthy based on the guidelines given in the text?Current assets: $418,000Current liabilities: $187,000Liquid assets: $47,000
A. Current ratio = 8.89 which is fine
Acid-test ratio = 0.25 which is very low
B. Current ratio = 0.25 which is very low
Acid-test ratio = 2.24 which is fine
C. Current ratio = 2.24 which is fine
Acid-test ratio = 0.25 which is very low
D. Current ratio = 2.24 which is fine
Acid-test ratio = 8.89 which is fine
Answer: C
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What will be an ideal response?
Rationalize the denominator. Assume that all radicands represent positive real numbers.
A. 
B. 
C. 
D. 