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