12. The following account balance information is available as of December 31, 20X4 for XYZ Co.:

Cash$240,000

Accounts receivable....$560,000

Marketable securities..$400,000

Prepaid insurance....$300,000

Equipment (net)...$3,300,000

Current liabilities (total).....$300,000

Long-term liabilities (total).$1,600,000

Common stock.....$2,000,000

Retained earnings...$900,000

What is XYZ Co.s quick or acid-test ratio?

a. 5.00

b. 6.00

4.00

3.00