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Fouch Bros. has an acid-test ratio of 0.92; and a cash ratio of 0.75. These ratios provide a way for financial statement users to evaluate:

Fouch Bros. has an acid-test ratio of 0.92; and a cash ratio of 0.75. These ratios provide a way for financial statement users to evaluate: A. Fouch's profitability. B. Fouch's ability to pay long-term debt (solvency). OC. Fouch's ability to sell merchandise inventory and collect receivables (activity). D. Fouch's ability to pay its current liabilities (liquidity)

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