The financial statements of Harbor Furniture Company include the following items:

What is 2017 acid-test ratio? (Round your answer to two decimal places. )
A)0.26
B)1.08
C)1.78
D)0.56

Question

The financial statements of Harbor Furniture Company include the following items:

What is 2017 acid-test ratio? (Round your answer to two decimal places. )
A)0.26 
B)1.08 
C)1.78 
D)0.56

Quizplus · Accepted Answer

D)Acid-test ratio = (Cash + Short-term investments + Net current receivables)/ Total current liabilities
Acid-test ratio = (Cash $50,500 + Short-term investments $29,000 + Net current receivables $92,000)/ $305,000
Acid-test ratio = $171,500 / $305,000
Acid-test ratio = 0.56

The Financial Statements of Harbor Furniture Company Include the Following