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Presented below is information related to Tolbert Company. Current Assets Cash $ 4,000 Short-term investments 75,000 Accounts receivable 61,000 Inventories 110,000 Prepaid expenses 30,000 Total

Presented below is information related to Tolbert Company.

Current Assets

Cash $ 4,000

Short-term investments 75,000

Accounts receivable 61,000

Inventories 110,000

Prepaid expenses 30,000

Total current assets $280,000

Total current liabilities are $100,000. What is the acid-test ratio?

a. 2.8 to 1.

b. 2.5 to 1.

c. 1.4 to 1.

d. 0.8 to 1.

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