Brief Exercise 172

Selected financial statement data for Freeman Company are presented below.

		12/31/17
Cash		$ 10,000
Short-term investments		20,000
Accounts receivable		60,000
Inventories		75,000
Total current liabilities		100,000

Compute the current ratio at December 31, 2017. (Round answer to 2 decimal places, e.g. 2.15:1)

Current ratio __:1

Compute the acid-test ratio at December 31, 2017. (Round answer to 2 decimal places, e.g. 2.15:1)

Acid-test ratio __:1