The following financial information has been taken from the year-end accounts of Wellingtons Tulip Tower hotel.

Year 20X1 20X2

Cash at bank $ 20,000 $ 24,000

Accounts receivable 11,500 13,500

Prepaid expenses 3,400 4,200

Inventory 10,900 12,000

Current liabilities 32,000 31,000

Long-term debt 250,000 232,000

EBIT 285,000 321,000

Interest on debt 16,000 14,300

Total assets 450,000 465,000

Required:

a) For 20X1 and 20X2 calculate Tulip Towers:

i. Current asset ratio

ii. Acid test ratio