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A Company Has $60,000 in Cash, $75,000 in Short-Term Investments

Question 64

Multiple Choice

A company has $60,000 in cash, $75,000 in short-term investments, $140,000 in net current receivables, and $145,000 in inventory. The total current liabilities of the firm are $395,000. The acid-test ratio of the company is:


A) 1.06.
B) 0.94.
C) 0.91.
D) 0.70.

Correct Answer:

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