Freiman Corporation's most recent balance sheet and income statement appear below:

Balance Sheet
December 31, Year 2 and Year 1
(in thousands of dollars)
	Year 2	Year 1
Assets
Current assets:
Cash	$182	$142
Accounts receivable	275	295
Inventory	142	152
Prepaid expenses	51	51
Total current assets	650	640
Plant and equipment, net	810	810
Total assets	$1,460	$1,450
Liabilities and Stockholders Equity
Current liabilities:
Accounts payable	$152	$172
Accrued liabilities	101	101
Notes payable, short term	71	81
Total current liabilities	324	354
Bonds payable	313	323
Total liabilities	637	677
Stockholders equity:
Common stock, $2 par value	122	122
Additional paid-in capital--common stock	255	255
Retained earnings	446	396
Total stockholders equity	823	773
Total liabilities & stockholders equity	$1,460	$1,450

Income Statement
For the Year Ended December 31, Year 2
(in thousands of dollars)
Sales (all on account)	$1,750
Cost of goods sold	1,000
Gross margin	750
Selling and administrative expense	414
Net operating income	336
Interest expense	57
Net income before taxes	279
Income taxes (30%)	84
Net income	$195

The acid-test ratio at the end of Year 2 is closest to:

1.41

1.61

2.04

1.07