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

Year 2 Year 1

Cash $37,500 36,850

Short-term investments 90,000 90,000

Accounts receivable, net 85,500 86,250

Merchandise inventory 121,000 117,000

Prepaid expenses 12,100 13,500

Plant assets 388,000 392,000

Accounts payable 113,400 111,750

Net sales 711,000 706,000

Cost of goods sold 390,000 385,500

A. 3.05.

B. 1.88

C. 2.26

D.2.95

E.1.98