Excerpts from Sydner Corporation's most recent balance sheet appear below: Sales on account in Year 2 amounted to $1,390 and the cost of goods sold was $900. The acid-test ratio at the end of Year 2 is closest to:

Question

Excerpts from Sydner Corporation's most recent balance sheet appear below:  Sales on account in Year 2 amounted to $1,390 and the cost of goods sold was $900. The acid-test ratio at the end of Year 2 is closest to:

Quizplus · Accepted Answer

Quick assets = Cash + Marketable securities + Accounts receivable + Short-term notes receivable
= $140 + $0 + $210 = $350
Acid-test ratio = Quick assets ÷ Current liabilities
= $350 ÷ $360 = 0.97 (rounded)

Excerpts from Sydner Corporation's Most Recent Balance Sheet Appear Below