Compute the current ratio and acid-test ratio. (1) Current Ratio 1 Choose Denominator: Current liabilities Choose Numerator: Current assets $ Current Ratio = Current ratio 97.750 Oto 1 (2) Acid-Test Ratio Choose Denominator: Choose Numerator: I! Acid-Test Ratio Acid-Test Ratio Oto 1 Reg 3 > CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 454,600 Cost of goods sold 296,85 Gross profit 157,750 Operating expenses 99, 100 Interest expense 4.900 Income before taxes 53.750 Income tax experise 21.653 Net income $ 32,097 Assets Cash Short-term investments Accounts receivable, nel Merchandise Inventory CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity $ 14,680 Accounts payable 8.400 Accrued wages payable 32.600 Income taxes payable 40,150 Long-term note payable, secured by mortgage on plant assets 2.600 Common stock 153,200 Retained earnings $ 251,650 Total liabilities and equity 17,5ee 3.200 4.400 72.400 Prepaid expenses Plant assets, el Total asset 83.000 ze.950 $ 251.050