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the following financial information relates to Grasscroft Ltd for the year ended 31 December Year 9: The following financial information relates to Grasscroft Ltd for

the following financial information relates to Grasscroft Ltd for the year ended 31 December Year 9:

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The following financial information relates to Grasscroft Ltd for the year ended 31 December Year 9: '000 860 Sales (all credit) Inventories at 1 January Year 9 Purchases (all on credit) 100 625 Inventories at 31 December Year 9 76 Trade receivables 120 Prepaid expenses 8 Cash in hand 12 Bank overdraft 16 80 Trade payables Accrued expenses 6 What is the acid test ratio of Grasscroft Ltd at 31 December Year 9 (to two decimal places)? A. 1.37:1 B. 1.28:1 C. 1.50:1 D. 1.25:1

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