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Question - Marigold Industries has the following current assets and current liabilities on the company's balance sheet: Cash $18000; Accounts Receivable $5000; Inventory $53000; Prepaid Rent $2600; Accounts Payable $20500; Long-Term Notes Payable $20000; and Unearned Revenue $4500. Compute the company's acid-test ratio?
a. 1.18:1
b. 1.75:1
c. 0.44:1
d. 0.92:1
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