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Using the following year-end information for Work-Fit calculate the acid-test ratio: Cash $ 40,000 Short-term investments 5,000 Accounts receivable (all current) 65,000 Inventory 340,000 Supplies 14,030 Accounts payable 111,500 Wages payable 33,000

Multiple Choice

0.26

0.35

0.46

0.67

0.76

1 Answer

4 votes
It’s 0.35 because I have used the formula to solve this and came up with 0.35
User Manushka
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