Given: The financial data below for Billingsley Enterprises in 2020. (hints: Internet Resources, Discussion Board)

Category Dollar Amount Cash $400,000 Accounts receivable 700,000 Inventories 840,000 Prepaid expenses 24,000 Accounts payable 1,300,000 Long-term liabilities 360,000

2. Determine the working capital for the company. A. $400,000 B. $280,000 C. $190,000 D. $640,000 Answer: _______

3. Compute the current ratio from the financial data provided. A. 0.97 B. 1.49 C.0.86 D. 1.17 Answer: _______

4. What is the acid-test ratio for the company in 2020? A. 0.66 B. 0.88 C. 0.99 D. 0.85 Answer:____________