12.The most recent balance sheet of Raconteurs, Inc., (in millions) is found here:

Current assets

Cash and marketable securities $10.5

Accounts receivable $39.8

Inventory $60.2

Total current assets $110.5

Current liabilities

Accrued wages and taxes $5.3

Accounts payable $34.9

Notes payable $29.4

Total current liabilities $69.6

a.Calculate Raconteurs' current ratio and acid-test (quick) ratio.

b.Benchmark ratios for the current and acid-test (quick) ratio are 1.48 and 1.23, respectively. What can you say about the liquidity of Raconteur's operations based on these two ratios?

a.Calculate Raconteurs' current ratio and acid-test (quick) ratio.

Raconteurs' current ratio is

(Round to two decimal places.