Serenity Health Care is a large integrated health care system located in the Midwest. It has a 100-year tradition of providing quality patient care to its customers regardless of their ability to pay for services. Recently, the chair of the board of directors and the chief executive officer (CEO) of Hall Healthcare System, a competitive organization, approached Serenitys CEO about a partnership because of its inability to continue to compete with Serenity and its declining financial performance.

Because Serenity is three times larger than Hall, the CEO would like to present to his board of directors a proposal in which Serenity acquires Hall Healthcare System. Here is the information that he plans to present to the board:

	2015	2014
Current assets
Cash and cash equivalents	$2,275,884	$7,900,318
Short-term investments	$3,945,998	$1,287,932
Receivables, less doubtful accounts	$4,958,923	$4,000,891
Other current assets (inventory)	$2,667,391	$5,590,076
Total current assets	$13,848,196	$18,779,217
Limited-use assets	$2,397,421	$4,932,097
Property and equipment	$4,510,961	$3,982,018
Other long-term assets	$2,301,810	$2,367,809
Total assets	$23,058,388	$30,061,141
Liabilities and net assets
Current liabilities
Current portion of long-term debt	$850,000	$1,562,091
Accounts payable	$3,120,692	$5,990,128
Estimated third-party settlements	$962,908	$1,409,610
Accrued salaries, wages, and fees	$5,837,624	$7,903,871
Other accrued liabilities	$2,163,187	$2,843,098
Total current liabilities	$12,934,411	$19,708,798
Long-term debt, net	$2,450,873	$3,906,781
Other noncurrent liabilities	$938,578	$1,456,053
Total liabilities	$16,323,862	$25,071,632
Net assets
Unrestricted	$400,000	$3,712,900
Temporarily restricted	$600,000	$900,000
Permanently restricted	$5,734,526	$376,609
Total net assets	$6,734,526	$4,989,509
Total liabilities and net assets	$23,058,388	$30,061,141

As a board member, calculate Hall Healthcare Systems current ratio and acid ratio to determine whether you support your CEOs decision to acquire Hall. Support your position and show your calculations.

Current ratio = Current assets / Current liabilities

Acid ratio = Total current assets less inventory / Total current liabilities