Using the Following Year-End Information for Bauman,LLC,calculate the Current Ratio

Using the following year-end information for Bauman,LLC,calculate the current ratio and acid-test ratio:
$$\begin{array} { l r } \text { Cash } & \$ 48,000 \\\text { Short-term investrnents } & 12,000 \\\text { Accounts receivable } & 45,000 \\\text { Inventory } & 225,000 \\\text { Prepaid expenses } & 12,500 \\\text { Accounts payable } & 86,500 \\\text { Other current payables } & 22,000\end{array}$$

A) 3.01 and 1.21
B) 3.16 and .97
C) 3.04 and 1.21
D) 1.09 and 4.77
E) 3.16 and 1.21

Correct Answer:

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