The summarized statement of financial position for Smiggle Company as follow:

Non-current assets RM250,000

Current Assets RM250,000

Total Assets RM500,000

Equity RM150,000

Non-current Liability RM100,000

Current Liability RM250,000

Total Liability & Equity RM500,000

Identify the working capital approach applied by Smiggle Company.

Select one:

a. Hedging Policy

b. Conservative Policy

c. None of the above

d. Aggressive Policy

Bentara Bhd
Statement of Financial Position for 2018
(RM in millions)
Current assets		Current Liabilities
Cash	98	Account payable	344
Account Receivables	188	Notes payable	196
Inventory	422
		Long term debt	457
Fixed assets
Net plant and equipment	2,880	Common stock	550
		Retained earnings	2,041
Total Assets	3,588	Total liabilities and owner's equity	3,588

Bentara Bhd
Statement of Profit and Loss for 2018
(RM in millions)
Sales	2,311
Cost of goods sold	1,344
Depreciation	276
Earnings before interest and taxes	691
Interest paid	141
Earnings before taxes	550
Taxes (34%)	187
Net income	363

Based on the financial statement, calculate the acid test ratio.

Select one:

a. 1.5 x

b. 0.8 x

c. 1.2 x

d. 0.5 x