At year-end, Schultz, Inc. has cash of $11,600, current accounts receivable of $48,900, merchandise inventory of $37,900, and prepaid expenses totaling $5,100. Liabilities of $55,900 must be paid next year. What is Schultz’s acid-test ratio?1.080.211.76Cannot be determined from the data given</p> </div>

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Asked Jan 5, 2020
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At year-end, Schultz, Inc. has cash of $11,600, current accounts receivable of $48,900, merchandise inventory of $37,900, and prepaid expenses totaling $5,100. Liabilities of $55,900 must be paid next year. What is Schultz’s acid-test ratio?

  • 1.08
  • 0.21
  • 1.76
  • Cannot be determined from the data given</p> </div>
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Acid test ratio or quick ratio is computed by dividing quick assets by current liabilities. Quick Assets are those current assets wh...

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