Compute the current ratio and acid-test ratio for each of the following separate cases. Which com¬

pany case is in the best position to meet short-term obligations? Explain. lpo5

Transcribed Image Text:

Case X Case Y Case Z Cash $ 800 $ 910 $1,100 Short-term investments 0 0 500 Current receivables 0 990 800 Inventory 2,000 1,000 4,000 Prepaid expenses 1,200 600 900 Total current assets $4,000 $3,500 $7,300 Current liabilities... $2,200 $1,100 $3,650