30. The most rigorous test of a firm's ability to pay its short-term obligations is its A current ratio. B Acid test ratio C. debt-to-assets ratio. D. times-interest-carned ratio, 31. In developing the pro forma income statement we follow four important steps: 1) compute other expenses. 2) determine a production schedule. 3) establish a sales projection 4) determine profit by completing the actual pro forma statement