Lia's Swim Shoppe has current liabilities of $298,100; cash in the amount $52,500; securities valued at $95,400; and accounts receivable of $158,200. Calculate the acid test ratio. (Round to the nearest hundredth)

Question

Quizplus · Accepted Answer

The acid test ratio is calculated as (Cash + Securities + Accounts Receivable) / Current Liabilities. Here, it is ($52,500 + $95,400 + $158,200) / $298,100 = $306,100 / $298,100 = 1.03:1.

Lia's Swim Shoppe Has Current Liabilities of $298,100; Cash in the Amount