This Question: 3 pts 11 of 35 (2 complete) The financial statements for Silver S

Question

This Question: 3 pts 11 of 35 (2 complete) The financial statements for Silver Service Company include the following items: 01 $43,500 28,000 56,000 132,000 525,000 126,500 15,000 57,000 01 Cash Short term Investments Net Accounts Receivable Merchandise Inventory Total Assets Accounts Payable Salaries Payable Long-term Note Payable Compute the acid-test ratio for 2018. (Round your answer to two decimal places) $45,000 18,500 46,000 46,000 551,000 123,000 18,000 59,000 OA. 0.65 O B. 0.78 C. 0.9 O D. 0.89

Explanation / Answer

Answer is B. 0.78

Please note that, Only one question can be answered at a time

Acid Test Ratio = (Cash + Short term investments + net accounts receivable) / Current Liabilities Acid Test Ratio = ($45,000+$18,500+$46,000) / ($123,000+$18,000) Acid Test Ratio = 0.78

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