Assume that the Current Assets for Shine Co. as of December 31, 2011, are listed below. Assume further that the total Current Liabilites on the same date are $150,000. What is the quick ratio (acid test) for Shine Co. on December 31, 2011?

ASSETS

Current assets:

Cash $90,000

Temporary Investments 30,000

Accounts Receivable 78,000

Inventories 99,000

Prepaid Expenses 20,700

Total current assets $317,700

.3

1.0

1.3

2.1