4. Refer to the following selected financial information from Texas Electronics. Compute the companys acid-test ratio for Year 2.

	Year 2	Year 1
Cash	$ 38,100	$ 32,850
Short-term investments	96,000	63,000
Accounts receivable, net	88,500	82,500
Merchandise inventory	124,000	128,000
Prepaid expenses	12,700	10,300
Plant assets	391,000	341,000
Accounts payable	110,400	110,800
Net sales	714,000	679,000
Cost of goods sold	393,000	378,000

Multiple Choice

• 3.14.

• 2.13.

• 2.02.

• 3.25.

• 2.38.