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Presented Below Is Information Available for Radon Corp Total Current Liabilities Are $ 100,000

Question 73

Multiple Choice

Presented below is information available for Radon Corp.: Current Assets

Cash................................................................................ $8,000 Marketable securities..................................................... 150,000 Accounts receivable................................................... 122,000  Inventories .......................................................... 220,000 Prepaid expenses............................................................ $ 60,000  Total current assets.............................................................$ 560,000  \begin{array}{ll} \text{Cash................................................................................ } & \quad \quad \quad \quad \quad\text{\$8,000 \quad \quad \quad } \\\text{Marketable securities.....................................................} & \quad \quad \quad \quad \quad \text{\ 150,000 \quad \quad \quad } \\\text{Accounts receivable...................................................} & \quad \quad \quad \quad \quad \text{\ 122,000 \quad \quad \quad } \\\text{ Inventories ..........................................................} & \quad \quad \quad \quad \quad \text{\ 220,000 \quad \quad \quad } \\\text{Prepaid expenses............................................................} & \quad \quad \quad \quad \quad {\text {\(\underline{\text{ \$ 60,000 }}\) }}{}\\\quad \quad \text{Total current assets.............................................................} & \quad \quad \quad \quad \quad \text{\$ 560,000 \quad \quad \quad } \\\ \end{array}


Total current liabilities are $ 100,000. To two decimals, Radon's acid-test ratio is


A) 5.60.
B) 5.30.
C) 2.80.
D) .36.

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