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Exercise 4-20 (Algo) Computing and analyzing the acid-test ratio LO A1 Cash Short-term investments Current receivables. Camaro $ 2,400 GTO Torino $ 230 $
Exercise 4-20 (Algo) Computing and analyzing the acid-test ratio LO A1 Cash Short-term investments Current receivables. Camaro $ 2,400 GTO Torino $ 230 $ 1,300 0 0 600 Inventory Prepaid expenses 260 2,175 300 510 2,020 Total current assets $ 5,135 600 $ 3,360 500 3,050 900 $ 6,350 Current liabilities $ 2,220 $ 1,320 $ 3,550 es Required: a. Compute the acid-test ratio for each of the separate cases above. b. Which company is in the best position to meet short-term obligations? Required A Required B Compute the acid-test ratio for each of the separate cases above. Camaro GTO Torino Acid-Test Ratio Choose Numerator: Choose Denominator: Acid-Test Ratio Current liabilities = Acid-test ratio = 0 to 1 1 / = 0 to 1 0 to 1 < Required A Required B >
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