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Using the following year-end information for Calvin's Clothing, calculate the current ratio and acid-test ratio for the business: Cash $ 52,000 Short-term investments 12,000 Accounts
Using the following year-end information for Calvin's Clothing, calculate the current ratio and acid-test ratio for the business:
Cash $ 52,000
Short-term investments 12,000
Accounts receivable 54,000
Inventory 325,000
Prepaid expenses 17,500
Accounts payable 106,500
Other current payables 25,000
Multiple Choice
- A.1.80 and 1
- B.1.97 and 1.52
- C.2.73 and 1.52
- D.3.50 and 0.90
- E. 1.80 and 0.90
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