Please refer to Table 4-2 for the following questions.

Table 4-2 Drummond Company Balance Sheet Assets:

Cash and marketable securities $400,000

Accounts receivable 1,415,000

Inventories 1,847,500

Prepaid expenses 24,000

Total current assets 3,686,500

Fixed assets 2,800,000

Less: accum. depr. (1,087,500)

Net fixed assets 1,712,500

Total assets $5,399,000

Liabilities:

Accounts payable $600,000

Notes payable 875,000

Accrued taxes 92,000

Total current liabilities $1,567,000

Long-term debt 900,000

Common Stock (100,000 shares) 700,000

Retained Earnings 2,232,000

Total liabilities and owner's equity $5,399,000

Net sales (all credit) $6,375,000

Less: Cost of goods sold (4,375,000)

Selling and administrative expense (1,000,000)

Depreciation expense (135,000)

Interest expense (100,000)

Earnings before taxes $765,000

Income taxes (306,000)

Net income $459,000

Based on the information in Table 4-2,

the acid-test ratio is A. 1.39. B. 1.33. C. 1.17. D. 2.15.