Information from Gre Company's balance sheet follows

Current Assets
Cash	$2,100,000
Marketable Securities	7,200,000
Accounts Receivable	50,500,000
Inventories	65,000,000
Prepaid expenses	1,000,000
Total current assets	$125,800,000
Current Liabilities
Notes payable	$1,400,000
Accounts payable	18,000,000
Accrued expenses	11,000,000
Income taxes payable	600,000
Current portion of long-term debt	3,000,000
Total current liabilities	$34,000,000

What is the acid-test ratio for Greg Company?

Select one:

a. 1.60

b. 1.76

c. 2.20

d. 1.90

What is the effect of the collection of accounts receivable on the current ratio and net working capital, respectively?

Select one:

a. current ratio- no effect; working capital- no effect

b. current ratio- increase; working capital- increase

c. current ratio- increase; working capital- no effect