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Sheldon Shoes Ltd. has provided you with the following selected information from 2020 and 2021: 2021 2020 Cash $15,500 $10,200 Accounts receivable 18,000 22.000 Short-term
Sheldon Shoes Ltd. has provided you with the following selected information from 2020 and 2021: 2021 2020 Cash $15,500 $10,200 Accounts receivable 18,000 22.000 Short-term investments 30,000 60,000 Inventory 29.000 38.500 Total current assets 92.500 130.700 Total current liabilities 101,000 122.000 Which of the following best interprets Sheldon Shoes' acid-test ratio analysis? o Acid-test ratio has weakened compared to prior year, decreasing from 0.8 to 0.6. Acid-test ratio has weakened compared to prior year, decreasing from 1.1 to 0.9. o Acid-test ratio has improved compared to prior year, increasing from 0.9 to 1.1. Acid-test ratio has improved compared to prior year, increasing from 0.6 to 1.8
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