The following data were abstracted from the 2007 December 31, balance sheet of Andrews Company (use for the first two questions questions):
|
Cash |
$136,000 |
|
Marketable securities |
64,000 |
|
Accounts and notes receivable, net |
1,84,000 |
|
Merchandise inventory |
2,44,000 |
|
Prepaid expenses |
12,000 |
|
Accounts and notes payable, short-term |
2,56,000 |
|
Accrued liabilities |
64,000 |
|
Bonds payable, long-term |
4,00,000 |
The current ratio is:
a. 1:2.
b. 2:1.
c. 1.2:1.
d. 3:1.
The acid-test ratio is:
a. 1:2.
b. 2:1.
c. 1.2:1.
d. 3:1.