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Refer to the following selected financial information from Fennie's, LLC. Compute the company's acid-test ratio for Year 2. Year 2 Year 1 Cash $ 39,100
Refer to the following selected financial information from Fennie's, LLC. Compute the company's acid-test ratio for Year 2.
| Year 2 | Year 1 |
Cash | $ 39,100 | $ 33,850 |
Short-term investments | 106,000 | 68,000 |
Accounts receivable, net | 93,500 | 87,500 |
Merchandise inventory | 129,000 | 133,000 |
Prepaid expenses | 13,700 | 11,300 |
Plant assets | 396,000 | 346,000 |
Accounts payable | 105,400 | 115,800 |
Net sales | 719,000 | 684,000 |
Cost of goods sold | 398,000 | 383,000 |
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