The following partial balance sheet ($ in thousands) for Paisano Seafood Inc. is

Question

The following partial balance sheet ($ in thousands) for Paisano Seafood Inc. is shown below.
  

The acid-test ratio is (Round your answer to two decimal places.):

Assets Liabilities and Equity Current assets: Current liabilities: Cash $ 73 Accounts payable $ 236 Accounts receivable (net) 181 Other liabilities 67 Notes receivable 67 Total current liabilities 303 Inventories 204 Long-term liabilities 101 Prepaid expenses 36 Total liabilities 404 Total current assets 561 Shareholders' equity: Plant assets (net) 260 Capital stock 139 Retained earnings 278 Total shareholders' equity 417 Total assets $ 821 Total liabilities and equity $ 821

Explanation / Answer

Acid test ratio is 1.059 or 1.06

Acid test Ratio ( Current Assets-inventory-Prepaid expenses)/Current liabilities (561-204-36)/303 1.059406

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