Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit: selected balance sheet amounts at December 31 of the prior year were inventory, $48.900; total assets, $189,400, common stock, 590,000; and retained earnings, $33,748.) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 448,600 Cost of goods sold 297,25@ Gross profit 151,350 Operating expenses 98,600 Interest expense 4,100 Income before taxes 48,650 Income tax expense 19,598 Net income $ 29,052 $ 17,500 3,200 Assets Cash Short-term investments Accounts receivable, net Merchandise inventory CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity $ 10,000 Accounts payable 8,40e Accrued wages payable 33,70 Income taxes payable 32,150 Long-term note payable, secured by mortgage on plant assets 2,650 Connon stock 153,300 Retained earnings $ 240, 200 Total liabilities and equity 3.300 63,400 Prepaid expenses Plant assets, net Total assets 90,000 62,800 $ 240,200 Compute the current ratio and acid-test ratio. (1) Current Ratio I Choose Denominator: Choose Numerator: Current Ratio 1 Current Ratio 0 to 1 (2) Choose Numerator: Acid-Test Ratio | Choose Denominator: 1 11 Acid-Test Ratio Acid-Test Ratio 0 to 1 7 =