At year-end, your company has cash of ($ 10,000), receivables of ($ 50,000), inventory of ($ 40,000),

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At year-end, your company has cash of $\$ 10,000$, receivables of $\$ 50,000$, inventory of $\$ 40,000$, and prepaid expenses totaling $\$ 5,000$. Liabilities of $\$ 60,000$ must be paid next year. What is your acid-test ratio?

a. 0.83

b. 1.00

c. 1.67

d. Cannot be determined from the data given

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Accounting

ISBN: 9780132439602

7th Edition

Authors: Charles T. Horngren, Walter T. Harrison

Question Posted: May 10, 2024 04:02 AM

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At year-end, your company has cash of ($ 10,000), receivables of ($ 50,000), inventory of ($ 40,000),

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Accounting

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