The following data are provided:

	December 31
	2018		2017
Cash	$ 1500000		$ 1015000
Accounts receivable (net)	1600000		1300000
Inventories	2650000		2250000
Plant assets (net)	7500000		6400000
Accounts payable	1200000		820000
Income taxes payable	220000		90000
Bonds payable	1350000		1350000
10% Preferred stock, $50 par	1850000		1850000
Common stock, $10 par	2300000		1900000
Paid-in capital in excess of par	1650000		1350000
Retained earnings	3850000		3550000
Net credit sales	12850000
Cost of goods sold	8550000
Operating expenses	3050000
Net income	1450000

Additional information: Depreciation included in cost of goods sold and operating expenses is $1,220,000. On May 1, 2018, 40,000 shares of common stock were issued. The preferred stock is cumulative. The preferred dividends were not declared during 2018. At December 31, 2018, the acid-test ratio was

3,100 2,070.

3,100 1,420.

5,750 1,420.

4,250 1,650