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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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