Question
ABC company presents the following balance sheet. (dollars in thousands) Assets: Liabilities: Cash $60 Accounts payable $240 Accounts receivable (net) 170 Other liabilities 80 Investments
ABC company presents the following balance sheet.
(dollars in thousands)
Assets: |
| Liabilities: |
|
Cash | $60 | Accounts payable | $240 |
Accounts receivable (net) | 170 | Other liabilities | 80 |
Investments | 50 | Total current liabilities | 320 |
Inventory | 200 | Long-term liabilities | 110 |
Prepaid rent | 25 | Total liabilities | 430 |
Total current assets | 505 | Stockholders equity: |
|
Property & Equipment, (net) | 255 | Common stock | 150 |
|
| Retained earnings | 180 |
|
| Total stockholders equity | 330 |
Total assets | $760 | Total liabilities and equity | $760 |
The acid-test ratio is (rounded to two decimal places):
Select one:
a. 1.58
b. 0.25
c. 1.17
d. 0.88
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