Q1930

Refer to the following selected financial information from McCormik, LLC. Compute the company's acid-test ratio for Year 2.

Cash$39,500$34,250Short-term investments110,00070,000Accounts receivable, net95,50089,500Merchandise inventory131,000135,000Prepaid expenses14,10011,700Plant assets398,000348,000Accounts payable103,400117,800Net sales721,000686,000Cost of goods sold400,000385,000

First number is year 2 and 2nd number is year 1