esc Based on the information in Table 4-2, the acid-test ratio is Table 4-2 Assets Cash and marketable securities Accounts receivable Inventories Prepaid expenses Total current assets Fixed assets Less: accum, depr Net fixed assets Total assets Liabilities Accounts payable Notes payable Accrued taxes Total current liabilities Drummond Company Balance Sheet Long-term debt Common Stock (100 000 shares) Retained Earnings Total liabilities and owner's Equity: Net sales (all credit) Less Cost of goods sold Selling and administrative expense 1 Q 2 W 43 2,800,000 (1.087.500) E $400,000 1,415,000 1,847 500 24,000 3,686,500 1.712.500 $5.399,000 $ 4 $600,000 875,000 92.000 $1,567,000 900,000 700,000 2,232.000 $5.999,000 $6,375,000 (4.375,000 (1,000,000) (135,000 (100.000 di R % 5 T Assets Cash and marketable securities Accounts receivable Inventories Prepaid expenses Total current assets Fixed assets Less accum, depr Net fixed assets Total assets Liabilities: Accounts payable Notes payable Accrued taxes Total current liabilities Balance Sheet Long-term debt Common Stock (100,000 shares) Retained Earnings Total liabilities and owner's equity Net sales (all credit) Less: Cost of goods sold Selling and administrative expense Depreciation expense Interest expense Earnings before taxes Income taxes Net income @2 2 2,800,000 (1,087,500) #3 3 80 F3 A $400,000 1,415,000 1,847,500 24,000 3,686,500 $ 1.712.500 $5.399,000 $600,000 875,000 92,000 $1,567,000 900,000 700,000 2,232,000 $5,399,000 $6.375,000 (4.375,000) (1.000.000) (135.000) (100,000) $765,000 (306,000) $459,000 7 8 FS 9