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Calculate the acid-test ratio for a company with current assets of $120,000, excluding inventory of $60,000, and current liabilities of $70,000. Interpret the acid-test ratio

Calculate the acid-test ratio for a company with current assets of $120,000, excluding inventory of $60,000, and current liabilities of $70,000. Interpret the acid-test ratio and discuss its relevance in evaluating a company's short-term liquidity position. Additionally, compare the acid-test ratio with the current ratio.

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