What is Galloway Company’s acid-test ratio?

a. 2.39

b. 0.69

c. 1.31

d. 6.69

e. 3.88 GALLOWAY COMPANY Balance Sheet December 31, 2008 Assets Cash . . . . . . . . . . . . . . . . . . . . . . $ 86,000 Accounts receivable . . . . . . . . . . . 76,000 Merchandise inventory . . . . . . . . . 122,000 Prepaid insurance . . . . . . . . . . . . . 12,000 Long-term investments . . . . . . . . . 98,000 Plant assets, net . . . . . . . . . . . . . . 436,000 Total assets . . . . . . . . . . . . . . . . . $830,000 Liabilities and Equity Current liabilities . . . . . . . . . . . . . $124,000 Long-term liabilities . . . . . . . . . . . . 90,000 Common stock . . . . . . . . . . . . . . 300,000 Retained earnings . . . . . . . . . . . . . 316,000 Total liabilities and equity . . . . . . . $830,000.AppendixLO1